Gold continues to appreciate against the US Dollar for the second consecutive session. The pair’s surge late on Wednesday was attributed primarily to fundamental events as a result of which the yellow metal had already reached its highest mark since mid-2016 circa 1,365.00 by Thursday morning.
Technical indicators are located near their historic highs and are starting to converge. These factors suggest that downside risks are likely to prevail in the market today.
The expected fall is likely to be hindered near the 1,355.00 mark which is reinforced by the weekly and monthly R2s. The pair, however, should gather strength and push even lower.
The ultimate low for today should be the 55-hour SMA and the weekly R1 near 1,345.00.
