Gold Technical Analysis: Poised to challenge 200-day SMA, around $1254-55 region

   •  The precious metal built on the overnight bullish breakthrough a one-week-old descending trend-line resistance and jumped to one-week tops on Tuesday. 

   •  However, slightly overbought conditions on the 1-hourly chart kept a lid on any strong follow-through, rather prompted some profit-taking at higher levels. 

   •  Meanwhile, technical indicators on 4-hourly/daily charts maintain their bullish bias and support prospects for an extension of the near-term positive momentum.

   •  Moreover, the fact that the commodity remains well above important intraday moving averages - 50, 100 & 200-hour SMA, further reinforce the bullish outlook.

Gold 1-hourly chart

   •  Hence, a move towards challenging the very important 200-day SMA, also coinciding with 61.8% Fibo. level of mid-May to mid-Aug. downfall, looks a distinct possibility.

Daily chart