Gold prices rose $4.07 an ounce on Thursday, supported by weakness in global stocks. The Dow Jones Industrial Average posted its biggest decline in three months on growing doubts about President Donald Trump's ability to deliver his economic agenda. XAU/USD is currently trading at $1287.34, slightly lower than the opening price of $1287.98.
The key levels which I pointed out yesterday remain the same as the resistance in the 1296/5 area wasn’t tested and 1282/0 held as support. If XAU/USD can break through 1292, it is likely that the market will visit the solid technical resistance in 1296/5. A break through there brings in 1304.
However, if the bears increase pressure and drag prices below 1280, then the market will probably revisit the 1276/5 zone. A break below there could send prices back to the 1271 level, the confluence of a horizontal support and the daily Tenkan-sen (nine-period moving average, red line).
