The 55-hour SMA continues to lead the yellow metal lower for the second consecutive week. The strong surge mid-Thursday was followed by two other tests of this line.
A successful breakout should lead to appreciation in this session. The nearest target is the 200-hour SMA at 1,245.00. Technical indicators on the 1H and 4H time-frames are likewise tended northwards.
If looking at patterns, the rate has been fluctuating around the senior channel line for several days, while the dashed junior channel was tested yesterday. It is expected that Gold tries to move towards its upper line.
The nearest support is the monthly S2 at 1,200.00. This is also the pair’s lowest position since July 2017 that should work as a very strong support barrier.
