On Friday, the XAU/USD exchange rate extended gains and exceeded the 1,475.00 level. During today’s morning, the rate was testing the support level—the monthly PP.
If the given support level holds, it is likely that gold could continue to raise against the US Dollar within the following trading session. A possible upside target is the 1,485.00 level.
However, if the given support does not hold, some downside potential could prevail in the market. Note that yellow metal would have to surpass the support cluster formed by the 55-, 100– and 200-hour SMAs in the 1,496.99/1,472.77 area.
