Gold prices rose for a third straight session on Tuesday and settled at $1256.06 an ounce as the dollar weakened. Yesterday’s narrow trading range shows that the market is waiting for key data from the U.S and comments from Fed officials. Investors will pore over the minutes of the FOMC’s March policy meeting, due to be released later today, for clues on the U.S. central bank’s plans for interest rates.
The key levels remains unchanged. The strategic 1261 level continues to block the bulls’ way while the Ichimoku clouds on the 4-hourly chart offers support. Although the medium-term outlook still points to an upwards bias, the short-term picture will likely depend on the direction prices will exit.
The bulls will have to overcome the resistance at 1261 in order to set sail for the 1265 level. A sustained break above 1265 implies that the 1277.35-1276 area will be the next port of call. To the downside, keep an eye on the 1252/0 region where the top of the Ichimoku cloud on the H4 chart sits. If this support gives way, the market will probably head towards 1242/39. Breaking down below 1239 would open up the risk of a fall to 1235.30.
