Although gold gained some ground against the American dollar on Tuesday, solid economic numbers out of the United States hindered the bulls' advance. The pair initially climbed to a 4-day high of $1291.09 but pulled back to the $1280 level after data releases. The Conference Board’s consumer confidence index came in stronger than expected with a print of 92.4 and the Commerce Department reported that orders for durable goods jumped 22.6% in July.

Aside from economic reports, investors also focus on geopolitical tensions because these events generally drive gold prices higher. Yesterday, Israel and Hamas agreed on a long-term truce. Russian and Ukrainian presidents held their first direct talks on the conflict in eastern Ukraine. President Putin said at that "Russia, for its part, will do everything to support this peace process if it starts" but he also underlined that it was up to separatist leaders and Ukrainian officials to come up with a truce plan. Although Kremlin denies supporting the rebels, the US and EU imposed sanctions on Russia.

XAUUSD Daily 82714

Yesterday's price action shows that the bulls won't give up without a fight. As I mentioned in my previous analysis, the XAU/USD pair has seen some support just above the 1292.70 - 1268 area. Today, I will keep an eye the 1280 and 1286 levels. 1-hour chart is slightly bullish at the moment but in order to expand their territory, the bulls will have to climb above the 1286 resistance level. If that is the case, it is technically possible to see the market tackling the next barrier at 1292.70. On the daily time frame, Ichimoku clouds currently cover the area between 1292.70 and 1312. Therefore encountering selling pressure wouldn't be surprising. To the down side, support can be found at 1280, 1272.90 and 1268. A daily close below the 1268 level would make me think that the market is heading to the 1240 support level.

XAUUSD H4 82714

Related Articles
  1. Investing

    Five Things to Consider Now for Your 401(k)

    If you can’t stand still, when it comes to checking your 401 (k) balance, focus on these 5 steps to help channel your worries in a more productive manner.
  2. Investing

    What’s Holding Back the U.S. Consumer

    Even as job growth has surged and gasoline prices have plunged, U.S. consumers are proving slow to respond and repair their overextended balance sheets.
  3. Economics

    The Problem With Today’s Headline Economic Data

    Headwinds have kept the U.S. growth more moderate than in the past–including leverage levels and an aging population—and the latest GDP revisions prove it.
  4. Forex Education

    China's Devaluation of the Yuan

    Just over one week ago the People’s Bank of China (PBOC) surprised markets with three consecutive devaluations of the yuan, knocking over 3% off its value.
  5. Fundamental Analysis

    Calculating Return on Net Assets

    Return on net assets measures a company’s financial performance.
  6. Investing Basics

    Explaining Rehypothecation

    Rehypothecation occurs when an asset used as collateral for one party is reused in another transaction.
  7. Investing Basics

    What's a Price-Taker?

    Price-taker is an economic term describing a market participant who has no effect on overall market activity.
  8. Economics

    Explaining the Participation Rate

    The participation rate is the percentage of civilians who are either employed or unemployed and looking for a job.
  9. Economics

    Understanding Organic Growth

    Organic growth is the increase in a company’s revenue and value due to internal operations.
  10. Investing Basics

    Explaining Options Contracts

    Options contracts grant the owner the right to buy or sell shares of a security in the future at a given price.
  1. Yield To Maturity (YTM)

    The total return anticipated on a bond if the bond is held until ...
  2. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
  3. Interest Coverage Ratio

    A debt ratio and profitability ratio used to determine how easily ...
  4. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  5. Receivables Turnover Ratio

    An accounting measure used to quantify a firm's effectiveness ...
  6. Remittance

    The term most commonly refers to money being sent via mail or ...
  1. Are spousal Social Security benefits taxable?

    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>
  2. What are the best ways to sell an annuity?

    The best ways to sell an annuity are to locate buyers from insurance agents or companies that specialize in connecting buyers ... Read Full Answer >>
  3. How are non-qualified variable annuities taxed?

    Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure. After-tax money is deposited ... Read Full Answer >>
  4. Why would someone change their Social Security number?

    In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, ... Read Full Answer >>
  5. Are spousal Social Security benefits retroactive?

    Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation ... Read Full Answer >>
  6. Is Argentina a developed country?

    Argentina is not a developed country. It has one of the strongest economies in South America or Central America and ranks ... Read Full Answer >>

You May Also Like

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!