A reversal from the 1,310.00 territory early on Monday was followed by a sharp upside pressure for Gold, as the weakening of the US Dollar boosted demand for the commodity. As a result, the 55-hour SMA and the 38.20% Fibonacci retracement were breached.
The Asian session marked a slight decline in price, as traders are awaiting patiently the first Fed rate hike this year. In terms of technicals, Gold faces strong resistance of the 100– and 200-hour SMAs and a down-trend near the 1,320.00 mark.
It is likely that bulls fail to gather enough momentum in to push above this area this session. Thus, the yellow metal should push lower down to the 55-hour SMA. No additional support is provided until 1,310.00.
