On Monday, the XAU/USD exchange rate breached the descending triangle pattern south. During today’s morning, the rate was testing the support level formed by the Fibo 23.60% at 1,462.89.
If the given support holds, it is likely that some upside potential could prevail in the market. However, it is unlikely that the price for gold could exceed the 1,485.10/1,504.69 area due to the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the monthly PP.
If the given support does not hold, it is likely that yellow metal could continue to decline against the Greenback. In this case it is expected that the nearest support level—the monthly S1, is located at the 1,439.32 mark
