Yesterday, the XAU/USD exchange rate tumbled to the 1,835.00 level. During Tuesday morning, the rate continued to decline.
From the one hand, it is likely that some downside potential could continue to prevail in the market. In this case yellow metal could gain support from the psychological level at 1,800.00.
On the other hand, note that the exchange rate could is trading far below the 55-, 100– and 200-hour SMAs in the 1,860.00 area. It could indicate that gold is in the oversold area. Thus, a reversal north could occur.
