19, September 2016

XAU/USD (a 4-hour chart)

General overview

Gold prices remained under pressure due to the strong dollar and lack of clarity over the timing of next Fed rate-hike.

Current situation

The pair remained under pressure on Friday. The price left the consolidation range and advanced lower. The yellow metal headed towards the next support level at 1300. Gold futures trended below the 50, 100 and 200 EMAs which accelerated their declines.  The 50, 100 and 200 EMAs kept heading lower. The resistance is at 1316, the support comes in at 1300 dollar per ounce.

MACD decreased which confirms the strength of sellers. RSI is within the oversold area.

Trading recommendations

If the pressure persists the price is expected to decline towards 1300.