Gold finally managed to overcome the strong one-week resistance of the 50.00% Fibonacci retracement and the monthly PP at 1,302.00 on Thursday. A further surge, however, did not follow, as the yellow metal was once again pushed below the psychological 1,300.00 level.
Downside pressure was provided by the 200-day SMA which is located at this reversal point. By Friday morning, the pair had breached several important support levels and was testing the 55– and 100-period (4H) and 200-hour SMAs at 1,297.00.
In case this barrier is breached, Gold should approach the senior channel and the 61.80% Fibo. Conversely, a failure to do so is most likely to cause ranging movement between the 200-day SMA and these smaller-scale lines.
