On Monday, the XAU/USD exchange rate touched the support level—the monthly S2 at 1,466.10. During today’s morning, the rate was trading near the given level.
It is likely that yellow metal could remain under pressure of the 55-hour SMA near 1,530.00 and trade downwards in the short run. In this case the rate could gain support from the Fibo 38.20% at 1,434.16.
However, if the monthly S2 holds, it is likely that gold could trade sideways between it, as well the monthly S1 at 1,526.37. Also, it is unlikely that bulls could prevail, and the rate could exceed the 100-hour SMA near 1,570.00.
