Gold prices fell $9.14 an ounce on Thursday, weighed down by recent gains in stocks. The precious metal extended its losses after the support of the $1279.80-$1278.60 area, the confluence of a horizontal support and a short-term bullish trend line, was broken. XAU/USD is currently trading at $1274.12, slightly lower than the opening price of $1274.35.
The market is trying to hold above the 1274 level, but the short-term charts are bearish. Prices are below the Ichimoku clouds on both the daily and the 4-hourly charts. If XAU/USD can’t stay above 1274, it is likely that the market will revisit 1271. A break below yesterday’s low of $1270.28 could lead to a drop to 1265.
To the upside, the initial resistance stands at 1278.60. The bulls have to overcome this barrier to make a move towards the 1279.80-$1278.60 zone. Closing above 1279.80 on a daily basis implies that the bulls are getting ready to challenge 1283-1281.60.
