By: DailyForex.com

The XAU/USD pair closed slightly higher than opening on Thursday after the weaker-than-anticipated economic data released from the Unite States raised doubt over how quickly the Fed is going to start to raise rates to normalize policy. Gold prices traded as low as $1319.20 an ounce before retreating back to the $1312 level. Lately, fears of an escalation of tensions between Ukraine and Russia have created a floor under the market but weighing on the yellow metal is the dominant up-trend in equities and lack of physical demand.

It seems that gold prices will keep oscillating around the 1312 level while the 1318/24 and 1303 levels contain the market. The bulls don’t want to give up and work hard to hold prices above the 1303 support level but the sellers come in and step up the pressure every time the market tries to rally.

XAUUSD Daily 81514

The pattern on the charts suggests we are going to be range bound in the near term while the market simply has no real catalyst to push prices in either direction. Only a daily close above the 1318 level would lure some investors back to the market and increase the possibility of a bullish attempt to test the 1324.50 resistance level. Beyond that level, 1331.50 will be the key level for the bulls to pass in order to challenge the bears on the 1340 battle field. If the bears increase the downward pressure and capture the 1303 support level, the XAU/USD pair will probably test 1297. Breaching this support would indicate that the next stop will be the 1292 level.

XAUUSD H4 81514

Related Articles
  1. Investing News

    Obama Wants to Double Wall Street Regulation

    President Obama want to double the budgets of the SEC and the CFTC over the next five years.
  2. Budgeting

    Is Living in Europe Cheaper than in America?

    Learn how living in Europe has financial advantages over living in the United States. Discover the benefits to take advantage of when it makes financial sense.
  3. Investing

    Buy Stocks Now? Nope. Here’s Why

    Hedgeye Senior Macro analyst Darius Dale explains the fallacy of Wall Street’s S&P 500 year-end targets.
  4. Retirement

    Top 5 Cities To Retire To In Croatia

    Cheaper than the Italian coast along the Adriatic Sea, but full of natural beauty, good food and active sports.
  5. Home & Auto

    The Latest Airbag Recalls: What to Do

    The latest warnings are from Honda/Acura and Dodge. How to look up your car – and what to do if you find it on the recall list.
  6. Term

    How Traditional IRAs Work

    A traditional IRA is a tax-advantaged retirement account that includes stocks, bonds, mutual funds and other investments.
  7. Mutual Funds & ETFs

    The Top 5 Large Cap Core ETFs for 2016 (VUG, SPLV)

    Look out for these five ETFs in 2016, and learn why investors should closely watch how the Federal Reserve moves heading into the new year.
  8. Term

    The History and Purpose of TQM

    Total quality management explores processes to enhance quality and productivity.
  9. Economics

    Does Big Money Hurt or Help Clinton and Rubio?

    Marco Rubio and Hillary Clinton lead their parties in raising money from Wall Street. Is that a help or a hindrance?
  10. Term

    How Market Segments Work

    A market segment is a group of people who share similar qualities.
RELATED FAQS
  1. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  2. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  3. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  4. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  5. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
  6. What is comparative advantage?

    Comparative advantage is an economic law that demonstrates the ways in which protectionism (mercantilism, at the time it ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center