Gold prices bounced off the 10-month lows, however, a roll back is expected to be limited after the Fed rate hike last week.
Gold traded within narrow consolidation above fresh low at 1122 on Friday. Prices bounced off 1120 and advanced to the 1140 resistance region where the recovery stalled and the pair declined back to 1130 dollars per ounce. The price continued developing well below the moving averages in the 4 hours chart. The moving averages kept heading lower. The resistance exists at 1140, the support stands at 1130 dollars per ounce.
MACD grew which indicates the sellers’ positions weakening. The RSI indicator remained within oversold readings.
A break above 1140 may extend recovery to 1150 dollars per ounce. A return below 1130 will increase bearish pressure. The price may weaken to 1120 and 1110 dollars per ounce.