GOLD Breaks Patterns And Drops

The yellow metal found resistance in the 1,740.00 level, which was enough for it to decline. The decline was only slowed down by the 55-hour simple moving average. However, eventually the SMA failed. By mid-day on Friday, the metal had reached the 1,700.00 mark.

If the 1,700.00 mark provides support, the metal’s price could trade sideways or retrace back up to the 100 and 200-hour simple moving average near 1,710.00. On the other hand, a failure to provide support could result in a decline to the recent low levels of 1,690.00 and 1,680.00.