Gold snapped six consecutive days of gains as the greenback edged higher and global equities markets saw a modest rebound. Technical selling was also behind gold’s 0.30% decline on Thursday. The XAU/USD pair traded as high as $1253.16 an ounce but a failure to sustain a push above $1252 weighed on the market. As a result, prices headed towards the support at $1242.
At this point, the XAU/USD pair will have to either break through the 1252/0 area and challenge the next barrier standing in 1265/1 or drop below the 1242 level and pay a visit to the 1239/7 zone. While a successful drop below 1237 would put more pressure on the market and open up the risk of a move towards 1231/29, a break up above 1265 would make me think that the bulls are ready to make an assault on the 1277.35-1277 region.
