Gold Prices Slip in Asia Trade - 13 March 2018

Gold prices ended Monday’s session down $0.77 an ounce as investors took a cautious stance ahead of U.S. inflation data. XAU/USD initially headed lower yesterday but the anticipated support around the $1314 level pushed prices higher. The market tried to break through $1326 in early Asia trading today but a bounce in the U.S. dollar index put pressure on prices.

The market is in the daily Ichimoku cloud and the Tenkan-sen (nine-period moving average, red line) and the Kijun-sen (twenty six-period moving average, green line) are completely completely on both the daily and the 4-hourly charts, indicating that there is lack of a strong momentum. The key levels remain unchanged as XAU/USD is struggling to make it out of the 1326-1314 range.

XAUUSD Daily

At this point, XAU/USD will have to either break through 1326 and challenge the next barrier standing in 1334.32-1332 or drop below the 1316/4 area and pay a visit to the strategic support in 1308/5. While a successful drop below 1305 would put more pressure on the market and open up the risk of a drop to 1301/0, a break up above 1265 makes me think that the bulls are about to make an assault on 1340.

XAUUSD h4

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