XAU/USD spent Monday’s trading session within the bounds of the 100– and 200-hour SMAs and the weekly PP in the 1,329.07/1,334.85 area. The pair, however, managed to accelerate early today and thus breach a one-week descending channel.
Being supported by the 55-, 100– and 200-hour SMAs circa 1,332.00 is likely to pressure the rate upwards in this session. Gains, however, are expected to be limited, as the nearest resistance is set by the weekly R1 and a four-month high circa 1,344.00.
By and large, Gold’s appreciation during the past trading sessions was driven by the strong support of the 200-hour SMA. It is likely that this moving average continues to provide unbreakable support this week, thus sending the pair above its four-month high.
