Following a three-day period of decline, Gold managed to recover some of its lost positions on Wednesday. During this time, the par remained fluctuating in between the bounds of the 55– and 100-hour SMAs.
The pair’s movement during the past three sessions demonstrates the existence of a short-term ascending triangle. This pattern is generally a bullish formation that should guide the pair higher within the following days. This scenario is likewise reinforced by bullish technical indicators.
Thus, the yellow metal should strengthen against the US Dollar in this session. A confirmation of this scenario would be provided by a breakout of the weekly PP at 1,348.20. Conversely, possible losses should be limited by the 1,335.00.
