12, October 2016

XAU/USD (a 4-hour chart)

General overview

The renewed risk aversion sentiment supported the dollar and weighed on gold prices.

Current situation

The bearish scenario prevailed on Tuesday. Gold prices got under selling pressure after a short-lived recovery in the Asian session. The yellow metal moved from the daily high at 1265 towards the level 1250. The moving averages kept moving lower in the 4 hours chart. The resistance is at 1260, the support comes in at 1250 dollar per ounce.

MACD remained in the negative area. MACD grew which indicates the sellers’ positions weakening. RSI indicator was holding near oversold levels.

Trading recommendations

The pair XAU/USD looks bearish. We expect a breakout of 1250 and a move lower towards 1240.