Gold Consolidates

The yellow metal has remained stable against the US Dollar during the following two weeks. Along the way, the price did manage to reach a new 2017/2018 high at 1,360.00. The price has since edged slightly lower and breached the 55-hour SMA.

Technical indicators demonstrate that some slight downside potential still exists in the market. But given that the pair is facing a strong support of the 100-hour SMA and the weekly and monthly PPs, losses should not exceed 1,338.10.

From the upside, Gold is restricted by the 55-hour SMA circa 1,355.00. Banks in the US are closed today; thus, the market is unlikely to introduce significant changes to the pair's positioning. The rate might even consolidate and remain between the 55– and 100-hour SMAs. If bulls are to prevail, gains could be capped at 1,360.00.

Chart: XAU/USD H4