29, November 2016

XAU/USD (a 4-hour chart)

General overview

The risk on sentiment weighed on gold prices marking them move away from the recent highs. Moreover market participants preferred to stay out of deals ahead of the upcoming risks events later in the week.

Current situation

The price failed to advance beyond 1200 dollars per ounce and retreated almost immediately after testing the level. Sellers managed to lead the price from 1200 to 1190 which was broken in the mid-Europe session. Having broken the level the yellow metal continued advancing south. After breaking the 50-EMA the price met a barrier around the 100-EMA in the 1 hour chart. The 100-EMA rejected the precious metal downwards. The price spent the second part of the day between the 100 and 50 EMAs. The resistance exists at 1190, the support stands at 1180 dollars per ounce.

MACD traded to the downside while the RSI stayed neutral/negative.

Trading recommendations

Inability to break above 1200 points to buyers’ weakness. A downtrend will start as soon, as the pair drops below the support level 1190. A move lower may generate negative signals and risk further easing towards 1170 dollars per ounce.