On Tuesday, the XAU/USD exchange rate raised to the 1,600.00 level. During today’s morning, the rate declined to the 1,590.00 mark.
On the one hand, some downside potential could continue to prevail in the market in the short run. In this case it is unlikely that the price for gold could decline lower than the 1,556.16/1,573.55 area due to the support cluster formed by the 55– and 100-hour SMAs, as well the monthly R2.
On the other hand, yellow metal could continue to appreciated against the US Dollar within the following trading session. In this case the exchange rate could face the resistance level—the monthly R3 at 1,615.69
