28, June 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

The gold again approached the two-year highs. The quotes grew after the UK unexpected decision to leave the UK. The metal is in demand as the news made investors seek for safe assets.

Current situation

The gold remained in the growing channel. As usual Monday was poor with news and there were no drivers that could move the pair. The gold futures showed a mixed dynamics still all trades were low volatile and the pair remained below 1330 dollars per ounce. The resistance is at 1330, the support is at 1300.

MACD is in the positive area. We receive the buy signal from the indicator. If the histogram remains in the positive area the growth will be continued. RSI approached the overbought area. If the signal line gets into the area the growth will be continued. In the scenario where the oscillator falls we will get a sell signal. The price is above the Moving Averages and their direction is upwards.

Trading recommendations

The price can grow to the resistance level of 1330 and further to 1360 dollars per ounce. We do not exclude a correction to 1270.