Since last Tuesday, the XAU/USD exchange rate has been consolidating in the 1,6200 area.
Note that yellow metal could gain support from the 55– and 100-hour moving averages, and extend gains against the US Dollar in the short run. In this case the exchange rate would face the resistance formed by the monthly R1 at 1,668.23.
However, if the price for gold fails to exceed the psychological level at 1,640.00, it is likely that it could maintain its consolidation. Also, it is unlikely that bears could prevail, and the rate could drop below the 200-hour SMA near 1,560.00.
