Yesterday, the XAU/USD exchange rate declined to the 200-hour SMA near 1,575.00. During Wednesday morning, the rate reversed north from the given support.
On the one hand, it is likely that the price for gold could recover from the recent drop. In this case the exchange rate would have to surpass the 55– and 100-hour SMAs near 1,610.00.
However, if the given resistance holds, it is likely that yellow metal could consolidate against the US Dollar in the short run. Also, it is unlikely that bears could prevail, and the rate could decline below the monthly PP at 1,577.89.
