Yesterday, the XAU/USD exchange rate raised to the 1,845.00 level. During Wednesday morning, the rate tested the monthly R2 at 1,861.52.
Note that yellow metal trades far above the 55-, 100– and 200-hour moving averages. Thus, it is likely that the rate is the overbought area, and some downside potential could prevail in the market.
On the other hand, it is likely that gold could trade sideways against the US Dollar near the given resistance level within the following trading session
