Yesterday, the XAU/USD exchange rate broke the upper line of the short-term descending channel. During Thursday morning, the rate resumed to trade within the given level.
From a theoretical point of view, it is likely that some downside potential could prevail in the market, and the rate could target the lower channel line located circa 1,790.00.
Meanwhile, note that yellow metal could gain support from the 200-hour SMA near 1,800.00. Thus, it is likely that gold could consolidate against the US Dollar in the short term.
