The yellow metal was guided by bulls on Wednesday who strengthened their positions during the second part of the session. As a result, the pair made a false breakout of the senior channel and surged up to the 2017/2018 high of 1,365.00.
This strong appreciation eased considerably during the Asian session, as Gold returned back in the senior pattern. This morning, it was set towards the 55-hour SMA and a short-term trend-line circa 1,345.00. The 100– and 200-hour SMAs and the 23.60% Fibo line are likewise located nearby.
In case this bearish sentiment continues to prevail, Gold should target 1,336.00 without surpassing it. In terms of upside potential, the pair is unlikely to move above the aforementioned high which coincides with the upper boundary of a six-week channel up.
