On Monday morning the bullion found support in the lone trend line of a short term ascending channel pattern. However, the surge was unlikely set to continue.
The reason for the hypothesis is the fact that the commodity price faced the resistance of the 55-hour simple moving average, which was located at the 1,268.00 mark.
Moreover, the 100-hour SMA was approaching the metal’s price from the north near the 1,271.50 level. As this simple moving average approaches, additional resistance will be met by the bullion.
