The yellow metal pierced the upper trend line of the channel down pattern on Wednesday. However, the 55-hour simple moving average almost immediately provided resistance and caused a drop of the metal’s price. The drop shortly reached below the 1,725.00 before the price began to recover.
On Thursday, the bullion retraced back to the previously pierced upper trend line of the channel down pattern. It appeared by mid-day that the price had resumed to respect the channel’s borders.
In the case of a surge, the bullion would test the upper trend line of the channel down pattern and the 55-hour simple moving average near 1,735.00. Above the 1,735.00 level, the 100-hour SMA could provide resistance near 1,740.00.
Meanwhile, a potential decline of the commodity price would find support in round price levels, as it had done throughout this week.
