Yesterday, the XAU/USD exchange rate reversed south from the 1,990.00 level. During today’s morning, the rate was testing the support provided by the 100-hour SMA near 1,960.00.
Given that yellow metal is pressured by the 55-hour moving average near 1,970.00, it is likely that some downside potential could continue to prevail in the market.
Note that the exchange rate could gain support from the 200-hour SMA near 1,948.00. Thus, gold could trade sideways against the Greenback in the short run.
