On Tuesday, the XAU/USD exchange rate declined to the support formed by the 200-hour SMA at 1,564.00. During today’s morning, the rate reversed north.
Note that yellow metal faced the resistance level formed by the monthly R2 and the 100-hour SMA at 1,570.61. Thus, a reversal south could occur, and the rate could re-test the lower boundary of the medium-term ascending channel located circa 1,562.00.
However, if the given resistance level does not hold, it is likely that gold could appreciate against the US Dollar in the short run. Note that the price for gold would have to surpass the 55-hour SMA at 1,576.06
