Yesterday, the XAU/USD exchange rate raised to the resistance level—the monthly R1 at 2,056.09. During Thursday morning, the rate was testing the given resistance.

If the predetermined resistance holds, it is likely that a reversal south could occur. In this case it is unlikely that the price for gold could decline below 1,997.50/2,017.50 area due to the support formed by the 55– and 100-hour SMAs.

Otherwise, it is likely that yellow metal could continue to extend gains against the US Dollar within the following trading session.

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