On Monday, the XAU/USD exchange rate maintained its consolidation in the 1,620.00 area. During today’s morning, the rate was testing the support level—the monthly PP at 1,607.96.
Given that yellow metal is pressured by the 55– and 100-hour SMAs near 1,620.00, it is likely that some downside potential could prevail in the market. In this case it is unlikely that the rate could drop below the 200-hour SMA near 1,570.00.
However, if the given support level holds, it is likely that the price for gold could maintain its consolidation. Also, it is unlikely that bulls could prevail, and the rate could exceed the local resistance level at 1,640.00.