Yesterday, the XAU/USD exchange rate raised to the 1,585.00 level. During Tuesday morning, the rate raised to the 1,590.00 level.
On the one hand, yellow metal could continue to extend gains against the US Dollar in the nearest future. A possible upside target is the upper boundary of the medium-term ascending channel circa 1,595.00.
On the other hand, it is likely that the exchange rate could trade sideways in the 1,585.00/1,590.00 area in the short run. Also, it is unlikely that bears could prevail, and the rate could decline below the 55-hour SMA near 1,581.00.
