14, October 2016

XAU/USD (a 4-hour chart)

General overview

 Gold prices grew on Thursday on the back of the weaker-than-expected Chinese trading data. Chinese trade balance data renewed worries of an economic slowdown in the country.

Current situation

The XAU/USD pair remains neutral in the short term. The price continued its rebound from the strong psychological level 1250 dollar per ounce. Gold prices erased the early losses, however, the upward impetus faded at 1260 in the lack of market mover. The moving averages maintained their bearish slope 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. The RSI oscillator moved upwards.

Trading recommendations

The price is in a flat. A break above or below the current levels will determine further direction of the yellow metal. A daily close above 1260 will open the way towards 1270-1275. A move lower shall extend losses towards 1240.