Yesterday, the XAU/USD exchange rate reversed south from the psychological level at 1,286.00. During Wednesday’s morning hours, the rate reversed north from the 200-hour SMA at 1,277.99.
Given that the price for gold is pressured by the 55– and 100-hour moving averages, it is likely, that some downside potential prevail in the market in the short run. In this case, the rate could decline to the 1,276.00 level.
However, if the given support holds, it is expected, that gold could trade sideways between the given SMAs. Also, is the given resistance does not hold, the rate could jump to the monthly PP at 1,287.27.
