On Wednesday, the XAU/USD exchange rate breached the short-term descending channel south and dropped to the 1,870.00 mark.
From the one hand, it is likely that some upside potential could prevail in the market. In this case yellow metal could face the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the monthly PP in the 1,895.00/1,909.25 range.
From the other hand, it is likely that the exchange rate could face the resistance at the 1,885.00 mark. Thus, gold could trade sideways against the US Dollar within the following trading session.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.