Gold Analysis: Moves Below Long-Term Average

Contrary to expectations, the yellow metal was driven by bearish forces on Thursday. This fall, however, was not significant due to the nearby-located 200-hour SMA and a channel line.

This support cluster was surpassed early today, thus giving bears the opportunity to push the pair down to its distant support set by the 23.60% Fibonacci retracement at 1,335.40.

Technical indicators remain bullish for this session. Being restricted by the 55-, 100– and 200-hour SMAs, Gold might be reluctant to pick up momentum during the following hours, at least.

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In case of an upside breakout, the pair should not surpass the monthly R1 at 1,355.00.