The yellow metal’s price reached the support zone that surrounds the 1,680.00 level. This zone provided enough support for the price to consolidate by trading sideways above it. However, on Wednesday morning another attempt to pass it was made.
The near term future scenarios were based upon whether or not the support zone holds. Due to that reason, Tuesday’s forecasts remained unchanged.
If the zone of the low levels, provides support, the metal could trade sideways above it and consolidate the drop. On the other hand, a failure of the low levels to provide support could result in the metal reaching the 1,650.00 level.
In addition, note that the sideways trading could end with a recovery. A potential recovery could reach for the 1,700.00 level, which would be supported by the 55-hour simple moving average.