On Monday, the XAU/USD exchange rate breached the short-term ascending channel south. During today’s morning, the rate touched the 1,695.00 level.
Given that yellow metal is pressured by the 55– and 100-hour SMAs near 1,718.00, it is likely that some downside potential could prevail in the market. In this case the rate could decline to the 1,685.00 mark.
On the other hand, the exchange rate could gain support from the monthly R1 and the 200-hour SMA near 1,704.00 and trade upwards in the nearest future. In this case the price for gold could target the psychological level at 1,740.00.
