Gold analysis: Continues to surge
|Gold
The channel-up pattern of the yellow metal's price held, as its lower trend line together with the 55-hour SMA provided enough support to cause a surge. By the middle of Friday's European trading hours, the metal had reached the 1,795.00 level, which started to provide resistance.
In the near term future, the metal could trade sideways below the 1,795.00 mark until the 55-hour SMA catches up and provides the needed support for a surge. A surge would most likely immediately test the resistance of the 1,800.00 mark.
On the other hand, as the 55-hour SMA is lagging behind the price, a decline might occur. A decline might reach for the 55-hour SMA and the lower trend line of the channel up pattern near 1,785.00. In the case of the price passing the SMA and breaking the channel up pattern, the bullion might look for support in the 100 and 200-hour simple moving averages.
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