Gold prices rose $4.62 an ounce on Thursday as a retreat in the dollar sparked some short-side profit taking. XAU/USD traded as high as $1288.71 after finding support just above the $1276-$1275 area. U.S. economic data due for release Friday includes the personal consumption expenditures index and the consumer sentiment index.
The market is still trading below the Ichimoku cloud on the 4-hour chart but the daily cloud is right below and acting as support. The key levels remain unchanged as prices are within the 1288-1275 range. The bulls have to convincingly push prices beyond 1288 so that they can challenge the bears waiting at 1295. If the bulls pass through 1295, then 1298 and 1302 will be the next possible targets.
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However, if the 1288 level hinders the bulls’ progression, keep an eye on the support around the 1275 level. Breaking below 1275 could see a fall to 1270. The bears will have to overcome this strategic support so that they can set sail for the 1264 level.
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