The XAU/USD pair had a relatively tight range yesterday as investors try to digest last week's downswing. Diminishing geopolitical concerns and speculations that the Federal Reserve is leaning toward raising interest rates caused investors’ confidence in gold to erode. As a result, the precious metal dropped about 2% since last Monday. Recent data on the economic front confirms that the United States continues to outperform other parts of the world and that is moving stocks higher.

In the Middle East, there are efforts being made particularly by Egypt to clear the obstacles in the way of an Israel-Hamas ceasefire. Russian President Vladimir Putin and his Ukrainian counterpart, Petro Poroshenko, will attend talks with EU representatives today but I don't think hopes are too high. Because of that, I will be paying more attention to the technical levels.

XAUUSD Daily 82614

Speaking strictly based on the charts, the location of the Ichimoku clouds on the daily and 4-hour time frames shows the bears are still in charge and there are strong resistance levels to the upside. Bearish Tenkan-Sen (nine-period moving average, red line) - Kijun-Sen (twenty six-day moving average, green line) crosses on both charts also give an advantage to sellers. If the downward pressure continues and prices break below the 1273/68 support zone, then it is entirely possible to see the pair testing the support around 1259/4. Closing below this support would increase speculative selling and drag the market towards 1246.80. However, note that the market has been trying to form some sort of floor for the last three sessions. In order to regain their strength and march towards the 1292.70 level, where the bottom of the daily cloud sits, the bulls will have to push the XAU/USD pair above the 1286 resistance.

XAUUSD H4 82614

Related Articles
  1. Chart Advisor

    ChartAdvisor for November 27 2015

    Weekly technical summary of the major U.S. indexes.
  2. Retirement

    Suddenly Pushed into Retirement, How to Handle the Transition

    Adjusting to retirement can be challenging, but when it happens unexpectedly it can be downright difficult. Thankfully there are ways to successfully transition.
  3. Mutual Funds & ETFs

    The Democratization of the Hedge Fund Industry

    The coveted compensations of hedge fund managers are protected by barriers of entry to the industry, but one recent startup is working to break those barriers.
  4. Investing

    What a Family Tradition Taught Me About Investing

    We share some lessons from friends and family on saving money and planning for retirement.
  5. Retirement

    Two Heads Are Better Than One With Your Finances

    We discuss the advantages of seeking professional help when it comes to managing our retirement account.
  6. Financial Advisors

    Tips on Passing the CFA Level I on Your First Attempt

    Obtain valuable tips and helpful study instructions that can help you pass the Level 1 Chartered Financial Analyst exam on your first attempt.
  7. Professionals

    The Best Financial Modeling Courses for Investment Bankers

    Obtain information, both general and comparative, about the best available financial modeling courses for individuals pursuing a career in investment banking.
  8. Stock Analysis

    These are Twitter's 4 Biggest Bets for Next Year

    Looks at Twitter's plans for 2016 under CEO Jack Dorsey, who has returned to lead the company he founded seven years after he was replaced.
  9. Investing Basics

    Why Interest Rates Affect Everyone

    Learn why interest rates are one of the most important economic variables and how every individual and business is affected by rate changes.
  10. Entrepreneurship

    Top 5 Billionaires Living In Dallas

    Learn who the richest of the rich are in a city known for creating some of the world's wealthiest people, and read how they amassed their vast fortunes.
  1. Are secured personal loans better than unsecured loans?

    Secured loans are better for the borrower than unsecured loans because the loan terms are more agreeable. Often, the interest ... Read Full Answer >>
  2. Is Israel a developed country?

    Israel is considered a developed country, although it has substantial poverty and large income gaps. The International Monetary ... Read Full Answer >>
  3. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  4. How many free credit reports can you get per year?

    Individuals with valid Social Security numbers are permitted to receive up to three credit reports every 12 months rather ... Read Full Answer >>
  5. Is the Wall Street Journal considered to be a conservative publisher?

    The Wall Street Journal is controlled by Rupert Murdoch via Dow Jones Publications, which in turn is owned by Murdoch's News ... Read Full Answer >>
  6. Is Spain a developed country?

    Spain is a developed country. Nearly all organizations that analyze development status classify it as such. Spain has a strong ... Read Full Answer >>

You May Also Like

Trading Center