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Forex pairs in this Article » XAU/USD
By: DailyForex.com

The XAU/USD pair scored a gain of 1.01% on Thursday as weakness in the American dollar continued to lure some investors back into the market. The Greenback has been under pressure amid expectations the Federal Reserve will maintain its asset buying program at a monthly pace of $85 billion until the next year to achieve sustained improvement in the labor market and as a result we saw prices rising to the highest levels since September 20.

In the latest economic data, the preliminary reading of Markit’s flash manufacturing purchasing managers index came in at 51.1, down from the previous month's 52.8. It seems that gloomy economic numbers will continue to contribute to higher gold prices. Although we broke above the 1345 resistance level yesterday, the charts are still giving us mixed signals from a technical point of view. Because of that, I can’t rule out a pull back towards the 1326 level before climbing higher. If that is the case, on our way down, support may be found at 1341, 1330.95 and 1326.

XAUUSD Daily 102513


A weekly close below the 1326 support level would be negative and could take us back to the 1311 level at least. The bulls have to climb above 1354 in order to gain more strength. If the XAU/USD pair breaks through the 1354 barrier, I think the bulls will gain enough momentum to reach the 1366 level. Today, market participants will be waiting for the University of Michigan's consumer sentiment data and durable goods orders report.

XAUUSD 4hr 102513


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