Gold Price Analysis: Challenges descending trend-channel resistance, above $1700 mark

• Gold gained some positive traction on Wednesday amid a modest USD pullback.
• The set-up supports prospects for additional gains towards $1725-27 supply zone.

Gold built on the overnight late rebound from over one-week lows and continued gaining some traction through the mid-European session. The precious metal was last seen trading comfortably above the $1700 mark, near the top end of a short-term descending trend-channel.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and have again started gaining positive traction on hourly charts. Given that the metal has already found acceptance above 100-hour SMA, the set-up supports prospects for an eventual bulls break through the channel.

Hence, some follow-through strength, back towards the $1725-27 supply zone, now looks a distinct possibility amid a weaker tone surrounding the USD. On the flip side, pullbacks below the $1700 mark might still be seen as a buying opportunity and remain limited near the $1693 region (100-hour SMA).

Gold 1-hourly chart

Technical levels to watch