On Monday, Gold edged lower by 133 pips or 0.72% against the US Dollar. A breakout occurred through the lower boundary of an ascending channel pattern during yesterday’s trading session.
Given that a breakout has occurred, the yellow metal is likely to continue to decline during the following trading session. The potential target for bearish traders will be near the 200– hour SMA at 1858.6.
However, the 100– hour simple moving average at 1874.6 could provide support for the XAU/USD exchange rate within this session.
