At the beginning of May, the XAU/USD exchange rate dropped to the 1,675.00 level and reversed north. During today’s morning, the rate was testing the 100-hour SMA.
Given that yellow metal is supported by the 55-hour SMA near 1,898.00, it is likely that some upside potential could prevail in the market. However, note that the rate would have to surpass the 200-hour SMA near 1,709.00.
If the 200-hour moving average holds, it is likely that gold could trade sideways against the US Dollar within the following trading session.
If the given support does not hold, it is likely that the price for gold could decline below the 1,690.00 level.
