Gold Sell Off

The first part of Wednesday's trading session was spent in a calm manner, as the yellow metal was moving along the 55-hour SMA. A strong surge mid-session pushed the pair 0.94% higher towards its one-week high of 1,348.00.

These gains, however, failed to remain for long, as the prevalence of strong downside risks resulted in a plunge back down to the monthly pivot point and the senior channel at 1,330.00. Technical indicators demonstrate that this bearish sentiment could allay during the following hours, thus allowing for a slight recovery.

Gains are likely to be limited due to the massive resistance cluster formed by the 55-, 100– and 200-hour SMAs and the 23.60% Fibo located near 1,337.00. This area might eventually be breached during the remaining part of this trading week.

Big impact on the price could occur tomorrow when the US NFP's and jobs data will be released.

Chart: XAU/USD H4