By: DailyForex
Gold prices rose sharply in afternoon U.S. trading on Wednesday as the dollar came under fresh pressure after the minutes from the Federal Reserve’s July gathering showed officials split over the timing of future rate increases. XAU/USD is currently trading at $1283.75, higher than the opening price of $1271.12.
This reaction pushed prices above the Ichimoku cloud on the hourly chart and forced shorts to cover their positions. If the market can stay above the 1282/0 area, prices may visit the next barrier sitting in 1288/6.
At this point, the bears will have to pull prices back below 1280 if they don’t intend throw the towel. In that case, they could have another change to challenge 1277/6. A break down below 1276 indicates that the bears are on their way to test 1274/1.