Gold ended slightly lower on Wednesday as the dollar recovered some of its recent losses and equity markets continued to advance. Although the last couple of sessions saw bearish pressure due to fact that the bulls failed to penetrate a strong resistance at 1081.55, the support at 1068 held yesterday.
At the moment, it looks like the XAU/USD pair is going to make a trip back up to the 1081.5 resistance. However, in order to reach there, the bulls have to pass through the minor barrier in the 1076.90-1075.80 zone where the top of the hourly Ichimoku cloud sits. The key resistance is quite a long way away, up at 1087.
To the downside, keep an eye on the 1068 support. There is another crucial support level not far below that at 1066.45. The bears will indeed need to break below 1066 before they march towards the 1061.27 level which happens to be the bottom of the 4-hourly cloud.
