XAU/USD (a 4-hour chart)
Gold recovered on Monday despite Cleveland Fed President’s speech where he supported the idea of a U.S. rate hike in 2016.
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.
A move below 1250 will signal the return of sellers. The yellow metal may extend its losses towards 1240.