By: DailyForex.com

The XAU/USD pair (Gold vs. the American Dollar) closed higher than opening for a third consecutive day as investors moved to the safety of gold after flaring Ukraine tensions ruined investors' appetite for riskier assets. Ukrainian President Petro Poroshenko said Russian troops are helping separatists and directly engaged in fighting. The White House said President Barack Obama and German Chancellor Angela Merkel agreed that the US and EU should consider more sanctions on Russia. The XAU/USD pair traded as high as $1296.39 an ounce but pared gains after the second reading of GDP showed the world's biggest economy expanded more than initially thought in the second quarter and the National Association of Realtors reported that sales of previously owned homes rose more than forecasts.

In my previous analysis, I had pointed out that the shorter-term charts were bullish (suggesting higher prices) and the 1286 level was the key for that. However, also noted that there was strong resistance at the 1296.05 level where the top of the Ichimoku cloud sits on the 4-hour time frame. Today, the XAU/USD pair is currently moving inside the cloud and because of that I will keep an eye on this territory.

XAUUSD Daily 82914

If the bulls manage to hold prices above the 1286/5.40 support, they might find another chance to test the 1296.05 resistance. But in order to do that, they will have to break though 1292.70 which happens to be the bottom of the daily cloud. Only a close above the 1297/.75 area could provide the bulls extra fuel they need to reach the next barrier at 1303. On the other hand, if the bears take the reins and drag the market below the 1286/5.40 support, the XAU/USD pair may head back to the 1282/0 zone. Breaking below this support would indicate that the bears are getting ready to challenge the bulls on the 1274/2.90 battlefield.

XAUUSD h4 82914

Related Articles
  1. Stock Analysis

    Gilead's 3 Key Financial Ratios (GILD)

    Learn about key financial ratios for Gilead Sciences. Read about a large debt offering the company made in the third quarter of 2015.
  2. Retirement

    Ten Social Security Questions Everyone Asks

    The average American doesn’t know enough about Social Security. Here are answers to 10 of the more common questions people ask about our retirement system.
  3. Investing News

    Where in the World Should You Put Your Money Now?

    The U.S. stock market is reeling and interest rates remain skimpy. Nevertheless, even now there are still a few ways to get a respectable return.
  4. Mutual Funds & ETFs

    Invesco’s Top Funds for Retirement

    Here's a list of Invesco investments—retirement funds—that may work for you if you have the time to let them mature over the long term.
  5. Fundamental Analysis

    5 Things to Know About the Volkswagen Scandal in 2016

    Find out what your need to know about Volkswagen and the impact the scandal will have on the company, its shareholders and U.S VW car owners.
  6. Stock Analysis

    Starbucks: Profiting One Cup at a Time (SBUX)

    Starbucks is everywhere. But is it a worthwhile business? Ask the shareholders who've made it one of the world's most successful companies.
  7. Your Clients

    Advisors: How to Mend Doctors’ Retirement Planning

    While physicians are typically highly compensated, many fall short when it comes to retirement savings. Here are some steps advisors can take to help.
  8. Budgeting

    4 Best and Safest Password Manager Apps for 2016

    Find out which password managers are the best at keeping your passwords secure while managing critical data you use in your daily digital life.
  9. Stock Analysis

    How Medtronic Makes Money (MDT)

    Here's the story of an American medical device firm that covers almost every segment in medicine and recently moved to Ireland to pay less in taxes.
  10. Stock Analysis

    3 Volatile U.S. Industries to Exploit in 2016 (VRX, IBB)

    Read about volatile sectors in the stock market that may provide opportunities for investors in 2016, including energy, mining and biotechnology.
RELATED FAQS
  1. How liquid are BlackRock mutual funds? (BLK)

    BlackRock, Inc. (NYSE: BLK) mutual funds are very liquid, as are all mutual funds. An investor receives payment for a redemption ... Read Full Answer >>
  2. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  3. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
COMPANIES IN THIS ARTICLE
Trading Center