On Wednesday, the price for gold skyrocketed the resistance level formed by the monthly PP at the 1,287.27 mark.
Given that the XAU/USD exchange rate is pressured by the 200-hour SMA, currently located at 1,284.88, it is likely, that some downside potential could prevail in the market, and gold could target the support level formed by a combination of the 55– and 100-hour SMAs circa 1,278.00.
If the given support level does not hold, it is expected, that the price for gold could fall to the Fibonacci 38.20% retracement at 1,273.68. Also, note, that the rate is trading near the upper boundary of the short-term descending channel, thus, it is unlikely, that some upside potential could prevail in the market
