XAU/USD (a 4-hour chart)
Gold prices traded higher on Tuesday as the disappointing US inflation report pushed back expectations for another US rate hike.
The XAU/USD remained rangebound on Tuesday. Gold prices reached the upper boundary of the range when the level 1260 dollar per ounce stopped its further recovery. The price struggled hard with the level to extend its gains, but failed. The yellow metal retreated from the daily high and continued to head lower in the North American session. The 200-EMA stopped the yellow metal strengthening in the 1 hour chart. The 200-EMA rejected the price downwards, towards the 50 and 100 EMAs. The 200-EMA is moving downwards, the 50 and 100 EMAs are neutral in the same chart. The resistance is at 1260, the support comes in at 1250 dollar per ounce.
MACD remained in the negative area. If MACD remains within the negative territory, sellers’ positions will strengthen. The RSI left the overbought area and headed south.
If the price makes another attempt and this time breaks above the 1260 resistance area then we could see its growth towards 1270 dollar per ounce. At the same time bearish scenario requires close below 2150 dollar per ounce.