During the early hours of Friday’s trading session the yellow metal was located near the lower trend line of the medium term ascending channel pattern near the 1,274 level. The metal was facing the resistance of the 200-hour SMA, which was pushing the commodity price into the support level. Due to that reason it is yet to be seen whether the pattern holds its ground. However, it is more likely that it will hold, as no significant fundamental changed have occurred in the world. Moreover, the recent political turmoil in the US has increased. Although, if the trend line is broken a fall down to the monthly PP at the 1,260.13 level will be a high probability. Meanwhile, in the case of breaking free from the 200-hour SMA the bullion might jump to the 1,285 mark.
