On Tuesday, the XAU/USD exchange rate reversed north from the 100-hour SMA. During today’s morning, the rate was trading at the 1,750.00 mark.
It is likely that yellow metal could gain support from the 55-hour moving average near 1,744.00 and continue to appreciate against the US Dollar in the short run. In this case the rate could target the upper line of the rising wedge pattern and the monthly R1 at 1,770.00.
However, if the exchange rate fails to exceed the 1,760.00 level, it is likely that gold could trade sideways against the Greenback in the short term.
Also, it is unlikely that bears could prevail in the market, and the price for gold could decline below the 200-hour SMA near 1,723.00.
