Yesterday, the XAU/USD exchange rate declined to the lower boundary of the short-term ascending channel at 1,491.25. During Friday morning, the rate was trading near the given line.
From a theoretical point of view, it is likely that the price for gold could reverse north in the nearest future. However, note that the rate would have to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the monthly PP in the 1,496.94/1,502.98 area.
If the given resistance holds, it is likely that yellow metal could trade sideways against the US Dollar, testing the lower channel boundary. If the given channel does not hold, the price for gold could target the psychological level at 1,485.00.
