Yesterday, the XAU/USD exchange rate tumbled to the 1,505.00 level. During Thursday morning, the rate was testing the resistance formed by the 200-hour SMA at 1,508.78.
If the given moving average does not hold, it is likely that yellow metal could extend gains against the US Dollar within the following trading session. However, it is unlikely that the rate could exceed the 1,520.00 level due to the resistance formed by the 55– and 100-hour SMAs.
If the given resistance level holds, it is likely that the price for gold could continue to go downwards. Note that the nearest support level—the monthly PP, is located at the 1,492.35 mark.
