08, September 2016

XAU/USD (a 4-hour chart)

General overview

Gold futures are still in green figures after a surprisingly weak U.S. service sector report which reduced expectations for the next U.S. rate hike in 2016.

Current situation

Gold prices remained at the weekly highs on Wednesday. Buyers seem to have run out of steam and the pair is going back and forth in a strict range between the marks 1345 – 1352. The gold prices are above the moving averages which are pointing upwards in the 4 hours chart. The resistance is at 1350, the support comes in at 1330 per ounce.

MACD and RSI slightly changed from yesterday. Indicators generate a buy signal.

Trading recommendations

The overall outlook remains bullish, for rise towards 1360 resistance area. However, as the XAU/USD is overbought we expect a short term correction towards 1330.