Yesterday, the XAU/USD exchange rate declined to the 1,685.00 level. During Thursday morning, the rate was testing the resistance formed by the 55– and 100-hour SMAs near 1,697.00.
If the given moving averages hold, it is likely that a reversal south could occur, and the price for gold could decline below the 1,685.00 level within the following trading session.
However, if the given level holds, it is likely that yellow metal could trade sideways against the US Dollar in the nearest future.
Also, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the 200-hour SMA near 1,702.00.
