11, October 2016

XAU/USD (a 4-hour chart)

General overview

Gold recovered on Monday despite Cleveland Fed President’s speech where he supported the idea of a U.S. rate hike in 2016.

Current situation

Gold gapped higher at the start of the new week. The price extended its recovery on Monday after a sharp decrease on Friday. The XAU/USD broke the level 1260 upwards and slowed down a few pips above it. The pair slightly eased at the NY open. The moving averages maintained their decline in the 4 hours chart. The resistance is at 1260, the support comes in at 1250 dollar per ounce.

MACD grew which indicates the sellers’ positions weakening. RSI remains within oversold levels.

Trading recommendations

A move below 1250 will signal the return of sellers. The yellow metal may extend its losses towards 1240.