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Gold : Rising Again on Ukraine Talks, However Gain Seems Limited

XAUUSD : Daily Chart

Gold today is surging again finding support from 1277.19. Earlier the Gold was declining as investors were thinking of sooner than expected interest rate increase. Although investors seems to be waiting for the US Core Durable Goods Orders data to be released today at 8:30 AM EDT for further indication of strength in the economy, there is something more going on with Russia and Ukraine which have increased the demand for safe haven. Russian President Vladimir Putin will meet his Ukrainian counterpart Petro Poroshenko for the first time since June in Minsk in hope of reaching a consensus or a solution to the several months old conflict. So if there is any ease in tensions, we would see Gold sliding down below the current key support at 1277.19. After surging the commodity is currently testing the key resistance at 1291.12.

Also on the daily chart, Gold seems to be trading within the falling channel trend so the gains would be limited as the resistance trend line shall prevent it to rise above it. However if it decline It may again find support from the falling support trend line of the channel. Declining below this support trend line of the channel will confirm the bearish trend on the pair.

XAUUSD : 4 Hour Chart

On the 4 hour chart, Gold seems like consolidating within descending triangle trend and most probably might find resistance from the resistance trend line of the triangle. So the gain shall be limited. The commodity will confirm the bearish trend by breaking below the key support at 1274.02. If it breaks above the resistance trend line the bullish trend will persist on the commodity.