On Wednesday, the XAU/USD exchange rate tested the resistance level formed by the monthly S1 at 1,475.18. During today’s morning, the rate continued to test the given resistance.
Note that yellow metal is supported by the 100-hour moving average, currently located at 1,469.71. If the given resistance and support levels hold, it is likely that gold could continue to consolidate in the short run.
However, if the given support does not hold, the price for gold could decline within the following trading session. In this case yellow metal could gain support from the 200-hour SMA, as well the lower boundary of the medium-term ascending channel at 1,465.00.
