03, October 2016

XAU/USD (a 4-hour chart)

General overview

Gold prices fell on Friday despite the growth of demand for safe-assets due to the banking problems in Europe.

Current situation

Gold was recovering during the European hours, but sharply fell at the beginning of the New York session. The price fell from the daily high at 1327 towards 1310 through 1320. The XAU/USD pair closed the day bearish. In the 4 hours chart gold quotes broke the 50, 100 and 200 EMAs. The moving averages are turning lower in the same chart. The resistance is at 1320, the support comes in at 1310 dollar per ounce.

MACD decreased which confirms the strength of sellers. RSI is heading south.

Trading recommendations

If the price maintains its bearish tone a break below 1310 should lead to a continued slide, with 1305 as the first probable target.