Gold prices ended Wednesday slightly higher after a quiet session. XAU/USD revisited the $1208-$1206 area after prices found support at around the $1200 level, but it was unable to break through. In economic news, the Commerce Department reported that gross domestic product increased at a 4.2% annual rate in the second quarter. World stock markets were mixed yesterday. U.S. stocks extended their rally on Wednesday, led by gains in technology shares.
The key levels remain the same as prices continue to move in a relatively narrow range. XAU/USD is trapped within the borders of the Ichimoku cloud on the M30 chart. The bottom of the cloud currently sits at 1203 and the bears need to pull prices below there to challenge the supports at 1200 and 1198. If XAU/USD breaks below 1198, look for further downside with 1196/5 and 1192 as targets.
The bulls, on the other hand, have to push prices above 1208 to tackle the next barrier in 1214-1212.40. A break through there brings in 1218. If this resistance is broken on a daily basis, the market will be targeting 1226-1224.50.
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