The way the bullion moved yesterday confirmed that a theory that a support area formed by a combination of the 200-hour SMA and the weekly PP near 1,284.70 was a stronger barrier than the 55- and 100-hour SMAs.
As a result, the pair broke to the top and has practically reached the monthly R1 at 1,292.91. Most probably, today the yellow metal is going to repeat this attempt. Such assumption is supported by an aggregate of technical indicators, which sends a strong buy signal. However, even if the gold will lose some value while waiting for beginning of the Jackson Hole Symposium, the drop is unlikely to go below the above combined support level.
