Yesterday, the XAU/USD exchange rate dropped to the 1,695.00 level. During Thursday morning, the rate reversed north to 1,705.00.
On the one hand, it is likely that some upside potential could prevail in the market. In this case it is unlikely that the price for gold could exceed the 1,720.00 area due to the resistance formed by the 55-, 100– and 200-hour SMAs, as well the monthly PP.
On the other hand, it is likely that yellow metal could trade sideways against the US Dollar in the 1,700.00/1,710.00 area within the following trading session.