Following two sessions of decline, the yellow metal has allayed its bearish sentiment. The first part of Monday’s session was very calm, as the bounds of the 55-, 100– and 200-our SMAs limited more extensive movements. Additional volatility was introduced later in the day; however, the aforementioned SMAs still remained the main limiting factor for the pair.
Technical indicators are strongly bearish, thus pointing to a possible decline in this session. The nearest southern barrier is 1,305.00 where the senior channel and a breached trend-line are located. In terms of resistance, Gold is restricted by the monthly PP and the 23.60% Fibo at 1,330.00 and 1,335.60, respectively.
Traders should be attentive when the US inflation data come out at 1230GMT.
