The strong 1% plunge of the XAU/USD exchange rate mid-Tuesday was followed by minor fluctuations in between the monthly S1 and a channel line at 1,320.00 and 1,222.50, respectively. This situation had not changed on Thursday morning, as well.
Technical indicators are generally neutral for this session, but it is likely that the 55-hour SMA continues to pressure Gold lower. The nearest support that could limit this fall is the 61.80% Fibonacci retracement at 1,216.00. These retracement lines were re-drawn today from the 2017/2018 low of 1,122.80, as the previous seven-month low was breached yesterday.
In general, the rate should move towards the upper channel line during the remaining part of this week.
