04, November 2016

XAU/USD (a 4-hour chart)

 General overview

Gold prices remained mostly positive after Fed’s decision to keep rates unchanged. The uncertainty on uncertainty over the U.S. election outcome keeps weighing on the dollar.

Current situation

Gold prices surged on Thursday morning and were able to break the resistance 1300 when the price suddenly turned around and sharply dropped. The yellow metal moved towards 1290 and broke the level in the middle of the European session. After breaking the level prices moved lower and tested the mark 1285. The XAU/USD pair approached the neutral 200-EMA in the 4 hours chart. The 50 is crossing the 100 EMA upwards, both lines are going north. The resistance is at 1300, the support comes in at 1290 dollars per ounce.

MACD is in the positive area. MACD decreased which indicates the buyers’ positions weakening. RSI left the overbought area and moved downwards.

Trading recommendations

If the bearish tone prevails the XAU/USD pair will move towards 1280 dollars per ounce.