Yesterday, the XAU/USD exchange rate tumbled to the 1,710.00 level. During Wednesday morning, the rate declined below the given level.
From the one hand, it is likely that some downside potential could prevail in the market. In this case the rate could target the 1,690.00/1,700.00 area.
From the other hand, it is likely that yellow metal could consolidate against the US Dollar in the 1,705.00/1,710.00 range.
Also, it is unlikely that some upside potential could prevail in the market, and the price for gold could exceed the 1,722.00/1,735.35 area due to the resistance formed by the 55-, 100– and 200-hour SMAs.
