Yesterday, the XAU/USD exchange rate declined to the support level formed by the 55-, 100– and 200-hour SMAs, located circa 1405.00. During Friday’s morning, the rate was testing the given support.
If the given moving averages hold, it is likely, that gold could remain to appreciate against the US Dollar. In this case, a possible upside target is the psychological level at 1,420.00.
Otherwise, it is expected, that the price for could continue to decline. Potential downside target is the lower boundary of the short-term ascending channel located circa 1,392.00.