Gold prices weakened amid risk-off sentiment increase

8 November, 2016

Gold prices weakened amid risk-off sentiment increase. The dollar strengthened when FBI stated that they did not find any criminal activity from the Democrat candidate Hillary Clinton.

Current situation

Buyers tried three times to break above 1310 but failed. The market switched the tone to bearish soon after that. Gold prices lost ground and headed lower. Sellers pushed the price from 1300 towards 1280 dollars per ounce. The price stopped a few pips above the level post-European open and continued its decline during the North American session. The neutral 200-EMA stopped the further pair advancing in the 4 hours chart. The 50-EMA is crossing the 100-EMA upwards. The resistance is at 1290, the support comes in at 1280 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 approached the oversold area.

Trading recommendations

The price may break the level 1280 to continue with losses. In this scenario sellers will move towards 1275. If the level 1280 stands gold futures may rebound to 1290 – 1295 dollars per ounce.


Source  
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