Bears continue to dominate XAU/USD in the short term. It fell below the 55-, 100– and 200-hour SMAs on Thursday and has since been trading below this cluster. The yellow metal tested this now-resistance at 1,228.00 mid-Friday, but failed to gather the necessary bullish momentum to actually break through.
Meanwhile, the rate breached the prevailing short-term ascending triangle two sessions ago and already managed to retrace from its bottom boundary. From theoretical point of view, this should be followed by further decline, setting the senior channel at 1.210.00—a one-year low—as a possible downside target.
This fall, however, should be limited today, as Gold is likely to re-test the 1,228.00 level once more. Another resistance is a two-week high at 1,235.00.
