The yellow metal strengthened against the US Dollar for the second consecutive session on Thursday. Additional upside momentum for this appreciation was provided by the strong support cluster set by all three SMAs at 1,313.00.
Gold breached the four-week descending channel and the 38.50% Fibonacci retracement and allayed near 1,322.00. The upper boundary of the two-week channel was altered to the upside in order to include this latest up-move.
The pair’s direction during the first part of the day should be southwards until the aforementioned SMAs are reached. Given that no significant US fundamentals are scheduled today, this area could remain intact, thus allowing the rate to resume its movement north until 1,320.00.
In case bulls prevail, gains should be capped at 1,330.00.
