02, June 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

The first days of June turned out to be not very successive for the Bonds Markets and the dollar. The weak dollar supported the gold metal. Investors make attempts to assess how close the United States is the interest rates hike.

Current situation

The gold weakened and lost all the gains achieved earlier. The gold could rise after a prolonged decline to 1220 where it turned down and fell, breaking the support of 1215. The Wednesday trades the pair stopped halfway to 1200. The market looks bearish. The resistance is at the level of 1215, the support is at 1200.

MACD is in a negative area, the histogram is above the signal line. MACD kept increasing. The signal is bullish. RSI approached the oversold level of 30.

Trading recommendations

If the price fixates below the support 1200, it may continue the downward trend in the short term. The potential target is 1180.