Gold prices inched higher on Wednesday, after hitting its lowest since May 17 in the previous session, as Asian stocks fell. Asian stocks are trading mostly lower this morning, following a drop on Wall Street.
XAU/USD is trapped in a narrow trading range while the key intra-day levels remain intact. Apparently the support in the 1240/39 zone sparked some short-side profit taking but the 1251/49 zone continues to act as resistance.
At this point, the market will have to either break through the 1251/49 area and challenge the next barriers at 1254 and 1257 or drop below 1240/39 and test the support in the 1236/5 region. Climbing above the 1257 level could foreshadow a move towards 1260/59. If this resistance is broken, then the 1264 level will be the next port of call. On the other hand, breaking down below 1240/39 may increase selling pressure and drag the market towards the 1236/5 zone. Once below there, the bears will be aiming for 1232/0.
