Yesterday, the XAU/USD exchange rate raised to the 1,720.00 level. During Thursday morning, the rate surpassed the given level.
It is likely that yellow metal could gain support from the 55-, 100– and 200-hour SMAs, as well the monthly R1 in the 1,693.00/1,704.29 area. Thus, gold could appreciate against the US Dollar in the short term.
Note that the exchange rate would have to surpass the psychological level at 1,740.00. If the given level holds, it is likely that a reversal south could occur within the following trading session.
