XAU/USD (a 4-hour chart)
Gold prices remained near 2-week highs as speculations over Fed rate-hike continued.
Technically, the short term picture is modestly bullish. The recovery from 1260 stalled at the 1270 level which hold onslaught of bulls. The XAU/USD pair traded in a narrow sideways range of 50 pips or less during the course of the trades. The 100-EMA limits yellow metal further strengthening in the 4 hours chart. The 50-EMA is neutral, the 100 and 200 EMAs are heading lower. The resistance is at 1270, the support comes in at 1260 dollar per ounce.
MACD remained at the same level which confirms the strength of buyers. RSI is consolidating within positive territory.
The tone is still positive in the market. Should gold prices advance beyond the 1270 level, the rally can extend in the short term up to 1280 dollar per ounce. A move below the level will ease buyers’ positions, giving them a chance to move the price to the monthly lows.