During Friday, the price for gold tumbled to the support level formed by the monthly PP at the 1,385.30 mark.
During Monday’s morning, the XAU/USD rate was testing the given support. If it holds, it is expected, that gold could remain to appreciate against the US Dollar. However, note, that the rate has to surpass the 200-hour SMA at 1,397.20.
If the given resistance and support level hold, it is likely, that the exchange rate could trade sideways in the short term.
It is unlikely, that the price for gold could surpass the 1,374.77 mark due to the support level formed by the Fibonacci 23.60% retracement.
