Gold prices ended Thursday’s session nearly unchanged, taking a breather after jumping 0.9% the previous day. Trading was lighter than usual yesterday as U.S. markets were closed for the Thanksgiving holiday. XAU/USD initially pulled back but found support around the 1288 level as expected and recouped early losses.
The bulls have the overall technical advantage, with the market trading above the Ichimoku clouds on the H4 and the H1 charts. The XAU/USD pair is currently in the process of testing the resistance at 1292 but the area between the 1292 and the 1296 levels has been troublesome for the bulls several times this year so it is not really surprising to see prices are stalling. If the bulls break through this barrier, it is likely that the market will challenge 1304.50 next.
The bears, on the other hand, have to pull the market below 1288 to tackle 1285.60. If this support is broken, XAU/USD will be targeting 1283.30, the bottom of the 4-hourly cloud. A break below there paves the way for 1280.52-1280.
