The pair had all means to reach the bottom trend-line of a dominant ascending channel. A release of information about the US GDP growth was projected to give an additional stimulus. However, a declaration of independence by the Catalan parliament and subsequent sack of the regional government by Spanish PM spiked demand for gold. As a result, the new trading session the pair started at the updated weekly PP at 1,274.04. As this barrier is additionally secured by the 55- and 100-hour SMA, the exchange rate is expected to resume movement to the south, trying to reach the weekly S1 at 1,264.23. Fundamental background, generally, supports strengthening of the Dollar. But in the meantime, North Korean and Catalan geopolitical risks might provoke short-term recoveries of the yellow metal.
