Gold still shows weakness to withhold the 1260 level with consistent failure as market and traders are psychologically programmed to abandon the 1260+ position. Technically, through out 2017, gold retreated more than 10 times every time the yellow metal reaches 1265. Previous sessions where gold surpassed 1265 was due to fundamental factors such as negative US data or safe haven buying.
Today, gold clocked 1259.68 then retreated to to 1255.68 low as reminder of recent behavior, still above 50-EMA (D1) at 1245 which still supports the bullish momentum. There is a chance today that gold can overcome the 1265 phobia fundamentally as US releases major data with Unemployment Claims shortly afterwards. Currently XAU/USD is trading 1257 with lower lows on hourly chart.
Fundamentals:
USD - Unemployment Claims with high impact + minor data impact today at 12:30 PM GMT.
Technical Overview:
Trend : Bullish Sideways
Resistance levels: R1 1259.60, R2 1263.80, R4 1265.84, R4 1271
Support levels: S1 1256.50, S2 1253.50, S3 1250.91, S4 1245
Summary: Gold remains bullish despite the ebb and flow between bearish and bullish behavior. Closing above 1250 keep bullish forces intact and in action. Expect setbacks from R1, R2, and R3, but if gold managed to cross R3 level, market should expect intensive inclines seeing R4 as a destination. Closing above 1265 stretches bullish flags, potential 1280+ either today or later sessions. On the other hand, dips should fight S2&S3 levels. In case of failure, gold could settle at S4. Closing below S4 indicates that gold shifted bullish momentum, the downside prevails, expectations for further dips on later sessions.