07, November 2016

XAU/USD (a 4-hour chart)

General overview

Gold prices remained around weekly highs as uncertainty over the US Presidential election results supported the yellow metal. Traders were cautious ahead of the U.S. data and refrained from creating fresh positions on Friday.

Current situation

Gold prices extended their side trading, staying around fresh weekly highs. The XAU/USD traded in a tight range between 1295 - 1305 dollars per ounce. The yellow metal remained above the moving averages in the 4 hours chart. The 200-EMA is turning upwards, while the 50 and 100 EMAs accelerated their growth. The 50-EMA crossed the 100-EMA upwards in the 4 hours chart. The resistance is at 1310, the support comes in at 1300 dollars per ounce.

MACD remained at the same level which confirms the strength of buyers. The RSI indicator continues consolidating within overbought levels.

Trading recommendations

In the scenario where buyers keep control the pair moves towards 1310. However, the yellow metal is oversold and we do not exclude a short-term correction to 1290 dollars per ounce.