XAU/USD (a 4-hour chart)
Gold prices softened on Tuesday amid strong expectations for a U.S. rate hike next month. Besides, a stronger dollar and the upbeat strength of the
Gold prices have been under pressure since Monday. The price stayed in a short-term descending channel and bounced off its upper limit on yesterday's trades. Sellers pushed prices below 1190 and drove them towards 1180 during the day. The price stayed below the 50, 100 and 200 moving averages in the 1 hour chart. The pair tested the 100-EMA and bounced downwards breaking the 50-EMA on its way down. All moving averages kept pointing lower. The resistance exists at 1190, the support stands at 1180 dollars per ounce.
The MACD histogram decreased which indicates the sellers’ strength. The RSI returned to the overvalued territory, favoring a new move lower.
Gold approached the 1180 support area. If it starts to challenge this region it is likely to break it. In this scenario sellers will drag prices towards 1170.