During the previous trading session, the XAU/USD exchange rate traded sideways in the 1,724 area. During Monday morning, the rate was trading at 1,722.00.
Note that yellow metal is squeezed by 55-, 100– and 200-hour moving averages, located near 1,724.00 and 1,710.00 respectively. Thus, gold could consolidate against the US Dollar in the short run.
On the other hand, it is likely that the rate could trade within a short-term ascending channel. Given that the rate is trading near the lower channel line, it is likely that some upside potential could prevail, and the price for gold could re-test the psychological level at 1,740.00.
