24, November 2016

XAU/USD (a 4-hour chart)

General overview

Gold prices are under pressure amid a stronger dollar. The dollar remains bullish amid strong expectations for a U.S. rate hike in 2016.

Current situation

Gold prices recovered and moved from February lows on Thursday. The 1180 level appeared to be a strong barrier which rejected the price. The XAU/USD recovered to 1190 dollars per ounce post-European open and struggled with the level the rest of the day. The moving averages slightly changed since yesterday. The resistance exists at 1190, the support stands at 1180 dollars per ounce.

MACD remained at the same level which confirms the strength of sellers. RSI indicator is near undervalued territory.

Trading recommendations

Gold prices recovery will remain limited as long as the price holds below the 1200 region. A move higher may ease the current downward pressure and will open the way towards 1210 dollars per ounce.