As previously expected, the 200-hour SMA and the upper boundary of the short-term wedge surrendered mid-Thursday, driven by strong two-hour surge until the 1,305.00 mark. Further advance did not follow, as the pair was restricted by the 200-day and 100-period (4H) SMAs.
Meanwhile, the Asian session started with slight weakening, as bulls lacked the necessary momentum to dash through the aforementioned moving averages. Thus, it is likely that this bullish sentiment allays in this session, thus resulting in a test of the 55-, 100– and 200-hour SMAs near 1,294.00/1,298.00. This area is expected to hold firm.
In terms of the upside potential, Gold should reach the 1,310.00 area where the upper boundary of a seven-week channel is located.
