Yesterday, the XAU/USD exchange rate traded sideways between the 55– and 100-hour SMAs. During Wednesday morning, the rate was trading at 1,650.00.

It is likely that the 55-hour moving average could push the price for gold lower to the support formed by the 200-hour SMA near 1,620.00. However, the rate would have to surpass the monthly R1 at 1,628.78.

If the monthly R1 holds, it is likely that yellow metal could consolidate against the US Dollar in the short term. Also, it is unlikely that bulls could prevail, and the rate could exceed the monthly R2 at 1,667.43.

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