On Friday, the XAU/USD exchange rate tested the psychological level at 1,390.00. During Monday’s morning, the rate was testing the resistance formed by the 55-, 100– and 200-hour SMAs, currently located circa 1,410.00.
If the given resistance holds, it is likely, that gold could depreciate against the US Dollar in the short term. In this case, the rate most likely to be supported by the monthly PP at the 1,385.30 mark.
Otherwise, it is expected, that the price for gold could surpass the given resistance and continue to increase. A possible upside target is the psychological level at 1,425.00.
