Yesterday, the XAU/USD exchange rate touched the 1,665.00 level. During Wednesday morning, the rate was testing the resistance level—the monthly R1 at 1,704.29.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future. In this case the rate could gain support from the 55-hour SMA near 1,687.00.
On the other hand, it is likely that yellow metal could gain support from the 100– and 200-hour SMAs near 1,695.00. In this case the price for gold could exceed the given resistance and target the 1,730.00 level.
