Gold prices are trading slightly higher in afternoon trading Thursday. The XAU/USD pair traded as low as $1254.41 an ounce after the Commerce Department reported demand for durable goods jumped 6.5% in July, but buyers stepped in and pushed prices back above the $1259 level.
On the weekly and the 4-hourly charts, XAU/USD is residing above the Ichimoku clouds, and the Tenkan-sen (nine-period moving average, red line) and the Kijun-sen (twenty six-period moving average, green line) are positively aligned. However, note that the market is still moving inside the daily cloud which occupies the area between the 1264 and the 1255 levels. At this point, I think XAU/USD will either break through 1264 and challenge the 1270 level or drop below 1255 and head back to 4-hourly cloud.