Gold Market Update - 28 August 2017
Gold was extending its gains in afternoon U.S. trading as disappointing U.S. housing data pressured the dollar. XAU/USD reached the $1308-$1304 area as expected after the market broke through the resistance at $1296.
This area may trigger some sort of profit taking so keep an eye on the 1308 level. However, until the technical picture deteriorates, pullbacks will continue to attract buyers. If the market takes a breather, prices may head back to the 1304 region. A failure to hold above 1304 implies that we will visit the 1300 level.
Closing above the 1308 level, on the other hand, would make me think that 1312 will be the next target. Once above 1312, the bulls will be getting ready to challenge 1320/19.