After reaching above the 1,250.00 level, the yellow metal’s price was consolidating its gains and retreated on Monday. Namely, the rate encountered the upper trend line of an ascending pattern and began a retreat.
The decline is expected to reach down to the support of the 1,245.07 level where a 38.20% Fibonacci retracement level is located at. As the rate meets this level, the 55-hour simple moving average should approach and provide additional support. Due to that support the surge is expected to resume.
Although, note that the simple moving average might take longer to reach the commodity price than one day.
