On Monday, the XAU / USD exchange rate revealed a rising wedge pattern as it turned south from the top pattern line. During today’s morning, the couple tested the support formed by the 100-hour SMA near 1,730.00.
If the given support holds, a reversal north is likely to occur and the price of gold may target the top pattern line, as well as the monthly R1 of 1,767.34.
In the meantime, note that yellow metal could be squeezed by the 55-hour SMA near 1,743.00. If the given moving averages hold, then gold is likely to consolidate against the US dollar in the short term.