Gold Pulls Back From Two-Week Highs – 29 August 2018

By DailyForex

Gold prices ended a choppy trading session lower on Tuesday. Gold prices saw some profit taking from recent gains that pushed prices to a two-week high. A higher U.S. dollar index was also a negative for the precious metal. The greenback firmed after the Conference Board said its index of consumer confidence rose to 133.4 from 127.9 the prior month.

The market is still trading above the Ichimoku cloud on the 4-hourly chart; plus, the Chikou-span (closing price plotted 26 periods behind, brown line) is above prices. However, XAU/USD is currently moving within the borders of the hourly cloud. If prices break through the 1208.50-1206 area and get back above the hourly cloud, the bulls may have a chance to test the strategic resistance at 1218. The bulls have to produce a daily close above this barrier to gain momentum for 1226-1224.50.

To the downside, the initial support comes in at around 1200 and that is followed by 1198, the bottom of the hourly cloud. If XAU/USD falls below 1198, the market will be targeting 1196/5. A break below 1195 suggests that the bears are about to visit the support in 1190-1188, the top of the 4-hourly cloud. Below there, the 1182-1180.50 area stands out as a strategic support.

This article provided by NewsEdge.