The yellow metal continues to slide lower against the US Dollar for the third consecutive session.
The pair lost 1.58% on Wednesday, consequently breaching several important support clusters, including the 200-hour SMA and the monthly PP near 1,330.00. This strong downside momentum allayed later in the session when Gold tried unsuccessfully to regain its position above the long-term moving average.
Technical indicators flash bullish signals in this session, as they are located in the oversold territory. However, it is yet to be seen if the strong resistance at 1,330.00 is breached, because bulls might lack the necessary force to overcome this cluster.
In terms of downside potential, the rate is likely to target the 38.20% Fibonacci line at 1,317.00.
