As apparent on the chart, the yellow metal was trading along the breached one-month channel during the first part of Friday. The pair subsequently breached the falling wedge and appreciated up to the 1,325.00 mark. It has since remained in a narrow range, stranded between the 55-, 100– and 200-hour SMAs.
In accordance with the senior channel, Gold should continue moving upwards this week; this scenario is also confirmed by bullish technical indicators. This session, however, might show limited gains, given the rate’s failure to accelerate after the 55– and 200-hour SMAs were breached.
Nearest northern barriers are provided by the monthly PP or the 23.60% Fibo at 1,329.15 and 1,325.65, respectively. In case the aforementioned SMAs are breached, a move below 1,315.00 is unlikely.
