Gold lost value against the US Dollar significantly on Friday, thus closing the day with a 1.81% plunge. As a result, the commodity dashed through several important support levels, including the senior channel which was formed in November, 2016. This strong fall was stopped solely by the monthly S1 at 1,2878.50.
It is more likely that the bearish sentiment eases in this session, thus allowing bulls to gain some advantage in the market. The nearest significant resistance is the 55-, 100– and 200-hour SMAs near 1,300.00, while, in case of a weaker bullish momentum, Gold might likewise retrace from the breached channel line at 1,290.00 and subsequently move back lower.
