Gold continued to gain ground against the American dollar as weak economic data out of the world's largest economy and escalating tension in the Middle East region increased gold's attractiveness as a safe-haven asset. According to data released from the Commerce Department, orders for durable goods fell 7.3%. Disappointing economic figures are leading some investors to believe the U.S. Federal Reserve will not be tapering imminently.
U.S. Secretary of State John Kerry said the evidence shows that chemical weapons were used by the Syrian government. It seems that the United States edging closer to a military response. Since geopolitical tensions usually increase the demand for gold, we might see the pair testing the upside barrier in the 1416 - 1425 zone. In order to gain more traction, the bulls will have to push prices above the 1407 level first.
Although the XAU/USD pair is trading above the Ichimoku clouds on both the daily and 4-hour charts, I think the 1425 level will offer strong resistance. Beyond that, there is little to slow down the bulls' progression until 1455. If the bears take over and prices drop below the 1392 support level, it is likely that we will test the 1380 level which was the top of the previous consolidation area. A close below this support level would indicate that it is technically possible to see pair revisiting the 1360 level.
