On April 26, The XAU/USD exchange rate bounced off a support level formed by the 200– hour simple moving average at 1770.0. As a result, the commodity surged by 100 pips or 0.61% during Monday’s trading session.
Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 1760.00 area could be expected within this session.
However, if the channel pattern holds, buyers are likely to drive the precious metal higher during the following trading session.
