XAU/USD (a 4-hour chart)
Gold strengthened on Thursday as the uncertainty over the timing of future rate hike and the upcoming the United States presidential election of 2016 support the safe-heaven demand. Besides, gold prices extended their gains after disappointing
Gold prices slightly changed during the day, remaining around 1270 dollars per ounce. The price was inactive after a sharp decrease on Wednesday. The XAU/USD slightly grew from 1265 to 1270, reversing a minor portion of its recent losses. The pair tested the level 1270 ahead of the NY session. Yellow metal remained between the 100 and 50 EMAs in the 4 hours chart. The 50 and 100 EMAs are neutral, while the 200-EMA is pointing lower. The resistance is at 1270, the support comes in at 1260 dollars per ounce.
MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI stayed within neutral area.
The pair may return to monthly high at 1275 after a daily close above the level 1270 dollars per ounce. A close below 1265 will retain the downward pressure.