After refreshing its lowest level of the year near $1266 on Tuesday, the XAU/USD pair staged a technical correction on Wednesday and extended its rebound into a second day during yesterday's session. However, with the greenback finding constant demand, the pair is having a difficult time to keep up with the upside movements as its failing to settle above the $1280 level even though the yellow metal traded at a high of $1282.5 per ounce. The 10-year yield is virtually unchanged after Wednesday's drop while major European equity indexes suffered moderate losses, suggesting that the market sentiment is negative.
Gold prices surged during yesterday's session to print a high of $1282.5 before immediately retreating and failing to settle above the $1280 level. With the momentum building up, the price is currently trading just below the $1277.18 resistance level. We will be focusing on the $1274.06 support level before we shift our focus to the upside and especially on the $1280.11 resistance level.
Support: 1277.18/ 1270.1
Resistance: 1280.11/ 1282.19