Gold prices rose $2.81 an ounce on Wednesday as the dollar’s recent rally stalled. XAU/USD initially headed lower yesterday but the anticipated support around the $1206 level pushed prices higher. World stock markets were mixed while U.S. stocks swung between gains and losses.
The key levels remain unchanged as XAU/USD is struggling to make it out of the 1206-1216 range. The market is currently trading above the Ichimoku clouds on the H1 and the M30 time frames. It looks as if prices are getting ready to grind higher, but note that the 4-hourly Ichimoku cloud is sitting just above the current levels.
If the market successfully penetrates the 4-hourly cloud, then the 1226-1224.50 area will be the next port of call. A break through there could trigger a push up to 1236. The bears, on the other hand, have to drag prices below the 1206 level to challenge 1200-1198. If the bulls fail to defend this camp, the next stop will be 1194. A break below the key technical support at 1194 could see a fall all the way down to 1182.
