Gold spent most of Thursday’s trading session below the 1,345.50 mark, as its further appreciation was restricted by the 200-hour SMA. The pair eventually collected enough momentum to dash through this line and the 55– and 100-hour SMAs. As a result, the upper boundary of the short-term ascending channel was breached to the upside.
By Friday morning, the pair had retraced back to the upper channel line. This factor together with bullish technical indicators suggests that the yellow metal is likely to continue its upward momentum in this session, as well, thus accelerating from the 200-hour SMA. The nearest resistance is set by the five-month high and the weekly R1 at 1,365.00 and 1,367.87, respectively