During the late hours of Thursday’s trading, the price for gold reached above the 1,755.00 level, which is the high level of March. However, a follow up surge did not occur. Instead, the commodity price declined after sideways trading in the 1,755.00 and 1,759.00 zone. Due to that reason this zone is now marked on the chart as a potential resistance zone.
On Friday morning, the commodity price was trading above the previous resistance zone at 1,745.65/1,747.60. In addition, the zone was being approached by the 55-hour simple moving average, to which from a technical analysis perspective the creation of the Thursday surge was attributed.
If the 55-hour SMA and the 1,745.65/1,747.60 zone provide support, the yellow metal could surge and test the resistance of the 1,755.00/1,759.00 zone. A passing of this zone could find resistance in the 1,790.00 level, which impacted the price in February.
On the other hand, a passing of the mentioned support levels would first look for support in the 100-hour simple moving average and afterwards the support zone below the 1,725.00 level and the 200-hour simple moving average.
