The yellow metal was stranded between the bounds of the 55– and 100-hour SMAs during the first part of Monday. A strong hourly surged mid-session allowed XAU/USD to breach the latter and move towards the 200-hour SMA and the upper boundary of a three-week channel down circa 1,330.00.
However, the pair's movement after breaching the line has been sideways, thus suggesting that it might not be able to overcome its nearest resistance. In addition, the formation of a minor rising wedge should result in a southern breakout. This bearish move should not be long-lived, as the rate is supported by the 55– and 100-hour SMAs at 1,320.00.
Gold should subsequently edge higher and try to re-test the 1,330.00 area. Gains should be capped at the 23.60% Fibo and the monthly PP at 1,335.60.