XAU/USD Analysis: Tests Resistance Level

Since Thursday, the XAU/USD exchange rate has been testing the resistance level—the monthly PP at 1,909.29.

It is likely that yellow metal could gain support from the 55-, 100– and 200-hour SMAs in the 1,901.30/1,908.00 area. Thus, some upside potential could prevail in the market.

However, if the predetermined resistance holds, the rate could reverse south and re-test the psychological level at 1,890.00 in the short term.