The yellow metal was consolidating in a narrow range against the US Dollar on Friday, as neither bulls nor bears could overcome the 55– and 100-hour SMAs that bounded at the time.
A change in sentiment occurred early today when the US Dollar weakened against major currencies. Gold was not an exception, thus allowing the pair to surge 0.93% up to the 200-hour SMA circa 1,340.00.
It is likely that the pair tries to edge higher towards its upper boundary or the weekly R1 near 1,345.00. However, this scenario would occur solely if the rate breached the combined resistance of the 200-hour SMA and the monthly PP at 1,338.50 which was being tested at the time of this analysis.
In terms of support, Gold is should not fall below the 55– and 100-hour SMAs circa 1,330.00.
