On Thursday, the XAU/USD exchange rate traded sideways around the 1,555.00 level. During today’s morning, the rate continued to consolidate.
Note that yellow metal is squeezed by the 100– and 200-hour SMAs, currently located at 1,550.86 and 1,556.68 respectively. Thus, it is likely that gold could continue to consolidate against the US Dollar in the short run. /p>
It is unlikely that bears could prevail, and the exchange rate could decline below the monthly R1 at 1,544.31. Also, it is unlikely that some upside potential could prevail, and the price for gold could exceed the monthly R2 at 1,570.61.