On Wednesday, gold surged. It was set to reach the 1,292.00 level. Moreover, if the 1,292.00 level is broken, the commodity price should reach up to the 1,300.00 mark.
Namely, the metal had passed the resistance of a monthly pivot point at 1,287.27 and was bound to reach an upper trend line of a large scale descending pattern near 1,292.00.
On the other hand the price had overextended its gains. It could consolidate by trading sideways or retreating back down to the monthly pivot point.
