Gold Prices Rise on Fresh Trump Jitters - 28 March 2017

Gold prices rose $6.45 on Monday, benefited from growing doubts over Trump’s economic plans. After the resistance in the $1253/2 zone was broken, the XAU/USD pair reached the $1265/1 region as expected, but recovering U.S. stock markets took some momentum away from the market. The XAU/USD is currently trading at $1253.53, slightly lower than the opening price of $1253.73.

The market is trading above the Ichimoku clouds on the daily and the 4-hour charts. We have positively aligned Tenkan-Sen (nine-period moving average, red line) and Kijun-Sen (twenty six-period moving average, green line) lines on both charts, along with Chikou Span (closing price plotted 26 periods behind, brown line)/Price crosses in the same direction. All these suggest that the bulls have the near-term technical advantage; however, the upside potential will be limited until prices passes through the aforementioned barrier located in 1265/1.

XAUUSD Week

If XAU/USD manages to climb and hold above 1265, we might see a bullish attempt targeting 1277.35-1276. A break through there would pave the way for a test of the 1292 level. To the downside, keep an eye on the 1252/0 zone. If the market dives below the Ichimoku cloud on the H1 chart, we may head back to the 1246/2 area. Falling through 1242 would indicate that the 1237/5 area might be the next port of call.

XAUUSD Daily

Alp Kocak
Alp Kocak has been trading Forex since 2003. He writes technical analysis based on Japanese candlesticks and Ichimoku Kinko Hyo.