The yellow metal lost ground on Monday morning. However, the commodity price remained in the ascending channel pattern, which is guiding the rebound from the support of a long term pattern. The Monday morning decline of the bullion was a bounce off from the channel up pattern’s resistance line. It is most likely that during the day the yellow metal will find support either in the 55 and 200-hour SMAs, respectively, at 1,253.57 and 1,254.29 and/or in the monthly PP, which is located at the 1,253 mark. A rebound against the pivot point would be consistent with the channel up pattern. Afterwards the next target for the commodity would be the 1,264 mark, where the weekly R1 is located at. Moreover, it has to be noted that the monthly PP is also supported by the weekly pivot point at 1,252.57.
