On Monday, the XAU/USD exchange rate tried to surpass the monthly R1 at 1,704.29. During today’s morning, the rate plummeted to the 1,675.00 mark.
Given that yellow metal is pressured by the 55-, 100– and 200-hour SMAs in the 1,690.00/1,700.00 area, it is likely that some downside potential could prevail. In this case the rate could target the 1,640.00/6,660.00 cluster.
On the other hand, the price for gold could reverse north from the 1,675.00 level and re-test the monthly R1 in the nearest future.
