Gold was driven by bearish momentum during the previous trading session. This sentiment strengthened mid-session when the pair breached the combined support of the 55-, 100– and 200-hour SMAs. As a result, the yellow metal was located at 1,315.10—its lowest level in March—late on Thursday.
Given that this area has provided considerable support during the past three weeks, it is likely that the pair fails to edge lower in this session and therefore approaches the previously-breached moving averages. The downward-sloping trend-line at 1,320.00 should be the highest mark for today.
Even though technical indicators flash bearish signals, some apparent signs of recovery add some ground to the aforementioned bullish scenario.
