On Friday, the price for gold traded sideways around the psychological level at 1,500.00. During today’s morning, the XAU/USD exchange rate was testing the lower boundary of the descending triangle pattern at 1,485.00.
From a theoretical perspective, it is likely that a reversal north should occur in the nearest future. In this case it is unlikely that the commodity price could rise higher than the 1,500.97/1,510.67 area due to the resistance of the 55-, 100– and 200-hour SMAs.
On the other hand, yellow metal could consolidate against the US Dollar within the following trading session due to the resistance level formed by the monthly PP at 1,492.35. If the given pattern does not hold, the rate could target the 1,480.00 level.
