At mid-day on Thursday, the yellow metal’s price found support in the 200-hour simple moving average and the 1,720.00 level. Afterwards, a surge followed. By the start of Friday’s European trading hours, the metal had passed the resistance of the 55 and 100-hour SMAs and was testing the 1,740.00 mark.
If the 1,740.00 level fails to provide resistance, the bullion should next test the 1,750.00 mark. In the case of the 1,750.00 not providing resistance, other round price levels could stop a surge.
On the other hand, a bounce off from any resistance level would most likely look for support in the 55 and 100-hour simple moving averages and the 1,730.00 level, which is strengthened by the 38.20% Fibonacci retracement level. Below these levels, the 200-hour SMA and the 1,720.00 mark could once again provide support.
