XAU/USD (a 4-hour chart)
Gold prices strengthened on Wednesday amid US dollar weakening across the board. The dollar moved from the 9 week highs increasing demand for the yellow metal.
After a short-lived rally gold prices stopped above 1270 dollars per ounce, hovering above the level the whole day. Buyers seem to be unable to move the price higher. The pair is turning around and is about to decline now. The price is struggling with the 100-EMA to move lower. The 100-EMA is neutral, the 200-EMA is moving lower, the 50-EMA is turning upwards in the 4 hours chart. The resistance is at 1280, the support comes in at 1270 dollars per ounce.
MACD is in the positive area. MACD decrease which indicates the buyers’ positions weakening. RSI bounced from the oversold area.
Failure to hold above 1270 risks a decline towards 1260 dollars per ounce.