On Tuesday, the XAU/USD exchange rate tested the support level formed by the monthly PP at 1,475.51. During today’s morning, the rate reversed north.
Note that yellow metal is supported by the 55– and 100-hour moving averages, currently located circa 1,475.00. Thus, it is likely that some upside potential could prevail in the market. A possible target is the 1,485.00 level.
However, if the resistance level located at 1,480.00 holds, it is likely that a reversal south could occur in the nearest future. In this case, it is unlikely that the price for gold could drop lower than the 200-hour SMA at 1,470.62.
