The XAU/USD pair (Gold vs. the American dollar) scored a gain of 1.05% on Friday after the bulls managed to push prices above the $1297 resistance level. Much of the volatility was driven by rising tensions along the Russia/Ukraine border and escalating violence in Gaza. European Union officials, who believe that Russia is intervening more aggressively in fighting between the Ukrainian military and separatist, said EU governments agreed to impose more crippling sanctions that target large sectors of Russian economy, including finance and energy.

Headlines from the region offset a better-than-expected reading on durable-goods orders and lifted the XAU/USD pair back above $1303 an ounce. Friday's data from the Commodity Futures Trading Commission (CFTC) showed that speculative traders on the Chicago Mercantile Exchange increased their net-long positions in gold to 146146 contracts, from 142458 a week earlier.

XAUUSD Week 72814

The Federal Reserve will be on market players' radars for the week as a two-day meeting of its policy-setting committee kicks off Tuesday. Although the XAU/USD pair currently trades below the Ichimoku cloud on the 4-hour time frame, the market remains above the cloud on the daily chart. Because of that I will not consider this pair truly bearish until we sink below the 1286/77 area. If the bears intend to head towards that zone, they will have to force market to a close below the 1292 support level (also happens to be 50% retracement based on the distance between 1240.49 and 1344.92 ) on a daily basis at least. In order to expand their territory, the bulls will need to break through the 1312/18.50 resistance area. In that case, they might have enough fuel to reach the next barrier at 1324.50.

XAUUSD H4 72814

Related Articles
  1. Savings

    Your 6 Worst Financial Mistakes

    Here are six financial mistakes you may be making, and a viable alternative for each.
  2. Investing Basics

    The Biggest IPO Flops

    Even with the uncertainties of IPOs, companies will keep issuing them in efforts to grow their enterprises, and some will end in disaster.
  3. Investing Basics

    Understanding Cash Management

    Cash management is a broad term that applies to the collecting, managing and investing of cash.
  4. Savings

    What is a Bounced Check?

    Bounced check is a slang term to describe a check that cannot be processed because its writer has insufficient funds.
  5. Economics

    Explaining Appreciation

    Appreciation refers to an increase over time in the value of an investment or asset.
  6. Savings

    10 Ways To Budget When You’re Broke

    Budgets are some of the best financial tools around – when planned properly and followed faithfully.
  7. Savings

    10 Steps to Retiring as a Millionaire

    Retiring with a million-dollar portfolio may sound like a dream, but it’s certainly attainable.
  8. Savings

    7 Ways to Trim Fat from Your Spending

    Check out these seven ways to cut the fat from your spending.
  9. Savings

    7 Millionaire Myths

    Here are seven millionaire myths and realities that reveal they don’t quite have it all.
  10. Taxes

    7 Expenses You Won’t Believe Are Deductible

    You may be surprised at some of the things that qualify as legitimate tax deductions. Here are seven that are especially quirky.
  1. Does working capital measure liquidity?

    Working capital is a commonly used metric, not only for a company’s liquidity but also for its operational efficiency and ... Read Full Answer >>
  2. Can working capital be negative?

    Working capital can be negative if a company's current assets are less than its current liabilities. Working capital is calculated ... Read Full Answer >>
  3. How do hedge funds use equity options?

    With the growth in the size and number of hedge funds over the past decade, the interest in how these funds go about generating ... Read Full Answer >>
  4. Are Cafeteria plans taxable?

    Whether the benefits you receive through your employer-sponsored cafeteria plan are taxable depends entirely on which benefits ... Read Full Answer >>
  5. Can mutual funds only hold stocks?

    There are some types of mutual funds, called stock funds or equity funds, which hold only stocks. However, there are a number ... Read Full Answer >>
  6. How do mutual funds compound interest?

    The magic of compound interest can be summed up as the concept of interest making interest. On the other hand, simple interest ... 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!