As it was expected, most of the previous trading day the yellow metal spent in an advance against the buck. On the one hand, this movement was triggered by a combined support created by the 55- and 100-hour SMAs. On the other hand, there is also a need to take into account a pressure from the lower trend-line of a rising wedge, which was moving along the above technical indicators. For this reason, today the pair is expected to make a rebound from the upper trend-line of this long -term formation and, starting from next week, resume the fall towards the monthly R1 at 1,348.36. However, there is a need to carefully monitor development of the North Korean crisis, as its further escalation might continue to stir interest in the gold.
