Yesterday, the XAU/USD exchange rate declined to the 1,484.00 level. During Tuesday morning, the rate was testing the upper boundary of the medium-term descending channel at 1,488.00.
From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the price for gold could target the 1,480.00/1,482.00 range.
It is unlikely that a breakout north from the given channel could occur, as yellow metal is also pressured by the 55-, 100- and 200-hour moving averages in the 1,488.86/1,491.20 area.
