As it was speculated on Tuesday, the yellow metal was impacted by round price levels before reaching the 200-hour simple moving average. Namely, the 1,710.00 and 1,720.00 levels provided the commodity price with both support and resistance. In the meantime, on Wednesday, the price was being approached by the mentioned SMA.
In the case of the 200-hour SMA providing resistance, the commodity price would aim at the strong support cluster near 1,700.00. At that level the 55 and 100-hour simple moving averages are strengthening the psychological round price level. However, note that the support of the 1,710.00 would have to be passed first, before reaching the 1,700.00 level.
If the 200-hour SMA fails, the metal should test the resistance of the 1,720.00 level. If this level fails, the metal would most likely aim at the 1,730,00 level.
