08, June 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

The gold slightly weakened on Tuesday as investors got cautioned when the recent rally failed. However, the gold metal remained near a two-week high it had reached earlier amid the loss of faith of traders in the rates hike in the USA.

Current situation

The gold spent Tuesday in a narrow range limited by the resistance at 1250 and the support 1235. Its further directions look uncertain and depend on the further economical and political drivers. The resistance is at 1260, the support lies at 1235.

MACD is in a positive area. The histogram is below the signal line. MACD is decreasing. RSI reached the overbought level of 70.

Trading recommendations

Once we break below the 1235 level, we think that the 1215 level will be next target.