On Wednesday, the XAU/USD exchange rate consolidated in the 1,640.00 area. During today’s morning, the rate maintained its consolidation.
It is likely that yellow metal could gain support from the 55– and 200-hour SMAs near 1,635.00 and appreciate against the US Dollar in the short term. Note that the rate could face the resistance level—the monthly R1 at 1,668.23.
However, if the rate fails to surpass the 1,650.00 level, it is likely that gold could continue to consolidate against the Greenback. Also, it is unlikely that bears could prevail, and the rate could decline below the monthly PP at 1,607.96.
