Gold Prices Edge Higher in Asia

22 September 2017 7:25:32 AM

By: DailyForex.com

Gold prices ended Thursday’s session down $10.14 an ounce as a surprisingly positive assessment of the U.S. economy from the Federal Reserve continued to weigh on the market. XAU/USD fell to its lowest level in nearly four weeks yesterday but climbed back above the $1294-$1292 area in Asia session following fresh threats from North Korea. The market is trading within the borders of the Ichimoku cloud on the M30 chart and is currently in the process of testing the resistance in the $1300-$1298 area.

It seems that some short-covering is taking place ahead of the weekend and the outcome of the test of 1300-1298 will tell us where prices are going next. Positive Tenkan-Sen (nine-period moving average, red line) - Kijun-Sen (twenty six-period moving average, green line) crosses on short-term charts suggest that XAU/USD may challenge the barrier in the 1306/4 area if the bulls can confidently lift the market above 1300-1298. The top of the hourly cloud also sits in this area so the bulls have to capture this strategic camp to make a run for 1312.

XAU/USD Weekly

To the downside, the bears need to take out yesterday’s low in order to increase pressure on the market. In that case, the 1282/0 area, where the weekly Kijun-sen resides, will be the next target. A break down below 1280 implies that the bears will be aiming for 1275/3.

XAU/USD 4h

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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