Yesterday, the XAU/USD exchange rate tested the lower line of the rising wedge pattern. During Tuesday morning, the rate breached the given pattern south.
From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the rate could target the psychological level at 1,700.00.
Meanwhile, yellow metal could gain support from the psychological level at 1,720.00. If the given level holds, it is likely that gold could consolidate against the US Dollar in the short term.
