On Tuesday, the yellow metal’s price passed the resistance of the 200-hour simple moving average. On Wednesday, the commodity reached above the upper trend line of the channel down pattern, which had guided the metal since last week.
If the bullion’s price continues to surge, it would most likely test the resistance of the 1,800.00 mark and the upper trend line of a minor channel up pattern.
On the other hand, a decline might find support in the 50, 100 and 200-hour simple moving averages in the 1,780.00/1,785.00 zone. Below the SMAs, the lower trend line of the channel pattern might act as support.
