Gold prices ended Monday’s session up $6.65 an ounce as the dollar eased after U.S. President Donald Trump said he is unhappy with the Federal Reserve’s recent interest-rate hikes and he will continue to criticize the central bank if it continues to raise rates. XAU/USD reached the $1196-$1194 area as expected after the market penetrated a technical resistance at $1189. There is no major U.S. economic data due for release today. Minutes from the U.S. Federal Reserve’s last meeting will be released on Wednesday.
Prices are above the Ichimoku clouds on the H1 and M30 time frames and the market is currently in the process of testing the resistance in the 1196/4 zone. The bulls have to overcome this barrier to challenge a horizontal resistance in 1202-1200. Also note that the 4-hourly Ichimoku could occupies the area between 1200 and 1206 so expect to see some long-side profit taking.
To the downside, the initial support sits in 1189-1187 and that is followed by 1182-1180.50. The bears have to push prices below 1180.50 to make an assault on 1177-1176. If this support is broken, XAU/USD will probably head back to 1172-1170. A break below 1170 implies that the market is targeting 1166.
