XAU/USD (a 4-hour chart)
Gold prices continued to lose value on Thursday as increasing expectations of a Fed’s rate hike in December, 2016 keep fuelling the demand for the dollar.
Gold extended its weakness on Thursday. The yellow metal has been falling the eighth session in a row and has refreshed 4-month lows. After a short consolidation during the Asian hours the price faced a downside pressure and extended its weakness towards 1260 dollar per ounce. After breaking the support 1260 the XAU/USD trended lower towards 1250. The 50, 100 and 200 EMAs accelerated their decline. All moving averages kept heading south. The resistance is at 1260, the support comes in at 1250 dollar per ounce.
MACD decreased which indicates the strength of sellers. RSI remained within the negative territory.
Gold futures are most likely to continue to move lower. The next sellers’ targets are the supports: 1250 and 1240.