During the previous trading session, the XAU/USD exchange rate consolidated in the 1,620.00 area. During Monday morning, the rate raised to the local resistance level at 1,640.00.
From the one hand, it is likely that bulls could prevail in the market, and gold could continue to appreciate against the US Dollar. In this case the rate could target the psychological level at 1,660.00.
However, if the given resistance holds, it is likely that a reversal south could occur in the nearest future. However, it is unlikely that the price for gold could drop below the support area formed by the 55-, 100– and 200-hour SMAs in the 1,603.00/1,613.00 area
