Bulls dominated the market on Tuesday, thus allowing the yellow metal to appreciate by 0.57%. The pair showed low volatility during this time, except for some hourly jumps in both directions. From technical point of view, this surge resulted from the strong support of the 55-, 100– and 200-hour SMAs and the weekly PP circa 1,333.80, as bulls saw an opportunity to collect some gains. By early Wednesday, Gold had reached the weekly R1 and the four-month high at 1,344.00. In addition, the upper boundary of the prevailing short-term pattern is also located nearby. Even though technical indicators still show some upside potential, it is likely that the market introduces a slight correction southwards down to the aforementioned support. This area is expected to hold firmly.
