On Thursday, the XAU/USD exchange rate declined to the lower boundary of the medium-term ascending channel at 1,465.00. During today’s morning, the rate reversed north from the given line.

From a theoretical perspective, it is likely that some upside potential could prevail in the market. However, note that gold could face the resistance formed by the monthly S1 at 1,475.18.

If the given resistance level holds, it is likely that yellow metal could consolidate against the US Dollar in the short term.

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It is unlikely that bears could prevail in the market, and the price for gold could drop lower than the Fibonacci 23.60% retracement at 1,462.89.

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