12, July 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

On Monday, gold futures rose while trading to 28-months high. According to the market rumors the Fed will remain cautious regarding its interest rates, despite the positive employment reports.

Current situation

Even though the price lost about 1,04% yesterday the gold quotations remained in the green zone. The pair showed a low volatility on Monday. The price was trading between the levels 1355 and 1374. The resistance is at 1360, the support comes in at 1330.

The indicators showed a growth continuation on the Daily chart. MACD decreased that indicates the buyers’ weakness. RSI is in a neutral zone giving no signal.

The 50, 100 and 200 EMAs are moving upwards in the 4 hours chart which is a buy signal. The gold broke the 50-EMA and stopped at the 100-EMA in the 1 hours chart. The 100-EMA acts as a support for the pair for now.

Trading recommendations

We expect the 1360 line break that will open the way for the buyers to 1390. We do not exclude pull-backs to 1330 and 1300.