On Tuesday, the XAU/USD exchange rate tumbled to the lower boundary of the medium-term ascending channel at 1,482.00. During today’s morning, the rate was trading near the given boundary.
From a theoretical perspective, it is likely that some upside potential could prevail in the market in the short run. However, it is unlikely that the price for gold could exceed the 1,497.51/1,504.12 area due to the resistance formed by the 55-, 100- and 200-hour SMAs, as well the monthly PP.
On the other hand, the exchange rate could trade sideways within the 1,485.00/1,490.00 area in the short term. If the given channel does not hold, the price for yellow metal could surpass the psychological level at 1,480.00.
