15, September 2016

XAU/USD (a 4-hour chart)

General overview

Gold prices traded lower on Wednesday ahead of expected U.S. retail sales report on Thursday. Traders expect the report will highlight a possible timing of the U.S. interest rate change.

Current situation

The gold partly recovered on Wednesday after Tuesday’s fall. The metal returned above 1316 and stopped at 1323 dollar per once. The pressure on the gold persists. The price is below the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages are neutral. The resistance is at 1330, the support comes in at 1316 dollar per ounce.

MACD is in the negative territory. RSI turned south and remained within negative territory.

Trading recommendations

If the pressure persists a strong breakdown and close below 1316 could send prices lower towards 1310. Alternatively, the price will grow towards 1330.