Since Tuesday morning, the XAU/USD exchange rate pierced the resistance level formed by the 55-hour SMA and the Fibo 23.60% near 1,860.00.
From the one hand, it is likely that yellow metal could extend gains the US Dollar in the short term. In this case the rate would have to exceed the resistance area formed by the 100– and 200-hour SMAs in the 1,888.40/1,900.90 range.
From the other hand, some downside potential could prevail in the market within the following trading session. In this case the price for gold could tumble below the psychological level at 1,820.00.
