On Thursday, the XAU/USD exchange rate declined below the Fibo 23.60% at 1,497.76. During today’s morning, the rate was testing the support level—the monthly S2 at 1,466.10.
Note that yellow metal is pressured by the 55– and 100-hour SMAs in the 1,510.00 area. Thus, downside potential could prevail in the market. In this case the rate could decline below 1,450.00.
However, if the monthly S2 holds, it is likely that gold could consolidate against the US Dollar in the short term. Also, it is unlikely that bulls could prevail, and the rate could exceed the monthly S1 at 1,526.37.
