During Monday, the XAU/USD exchange rate consolidated at the 1,510.00 level. During today’s morning, the rate declined to the support level formed by the monthly PP at 1,492.35.
If the given support level holds, it is likely that yellow metal could reverse north in the nearest future. In this case note that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 1,506.12/1,526.45 range.
Also, gold could trade sideways against the Greenback near the given support. If bears prevail in the market, the rate could continue to decline. A possible downside target is the psychological level at 1,480.00.
