On Friday, the XAU/USD exchange rate tried to surpass the resistance formed by the 55– and 100-hour SMAs near 1,737.00. During today’s morning, the rate pierced the lower line of the rising wedge pattern.
Note that yellow metal is also pressured by the 200-hour SMA near 1,733.00. Thus, it is likely that a breakout south could occur, and the price for gold could decline below 1,720.00.
Meanwhile, from a theoretical point of view, it is likely that some upside potential could prevail in the market, and the rate could trade along the lower pattern line.
