After finding support in the 1,675.00 level on Monday, the price of the yellow metal began a surge. By the middle of Tuesday’s GMT trading hours, the price had reached above the 100-hour simple moving average, which had previously stopped an attempt to recover.
In the near term future, the rate should aim at the resistance of the 200-hour SMA and 38.20% Fibonacci retracement level near 1,730.00. If this level would be passed, the metal could test the upper trend line of the channel down pattern.
On the other hand, the rate could face resistance at round price levels like the 1,710.00 and 1,720.00. Both of these levels have shown in the past that they can impact the commodity price.
