On Friday, at 12:15 GMT, gold suddenly surged broke the channel up pattern and pierced the 1,800.00 level. The following surge stopped at the 1,812.60/1,814.20 zone. At 15:00 GMT, the yellow metal’s price plummeted to the support of the broken channel pattern near 1,785.00.
By the middle of Monday’s European trading hours, the price for gold had reached the 1,800.00 level. If the metal continues to surge, it could once again reach the 1,821.60/1,814.20 zone.
On the other hand, the commodity price might decline and look for support in the trend line near 1,790.00. In addition, the 55, 100 and 200-hour simple moving averages could act as support levels.
