The XAU/USD exchange rate has remained stable for the second consecutive day. Tuesday’s trading session showed larger volatility if compared with the preceding day, but the price nevertheless remained near the 1,300.00 area.
Gold has once again approached the upper boundary of a seven-week channel and it seems that it might be ready to make a breakout north. However, technical indicators suggest that bears could take over the market today. This could likewise be confirmed by the fact that Gold breached the support of the 55– and 100-hour SMAs early today.
In case the 200-hour SMA at 1,295.00 is breached, a fall should continue until the senior channel and the 61.80% Fibo retracement at 1,285.00. Conversely, gains are likely to be capped at 1,315.00.
