Gold prices remained in the red staying

21 November, 2016

Gold prices remained in the red staying around its lowest level since late May. Expectations regarding the Fed rate hike next month together with a stronger dollar weighed on the metal.

Current situation

Gold prices extended their weakness on Friday. After breaking the level 1210 dollars per ounce the pair found a descent support at 1200. Having touched the level the yellow metal bounced and returned to 1215. The bullish spike faded soon and the precious metal moved lower. The 1 hour chart shows that the XAU/USD remained below the moving averages which kept moving lower. The resistance is at 1210, the support comes in at 1200 dollars per ounce.

The indicators recommend short positions. The MACD histogram decreased which indicates the sellers’ strength. The RSI oscillator consolidated within negative area.

Trading recommendations

To trigger additional downward momentum gold prices need to break the 1200 level. Sellers will aim at 1190 right after the break. As the precious metal is heavily oversold we do not rule out a correction. Besides, the pair refreshed its monthly lows around the strong psychological level which may reject prices upwards. To ease the downward pressure buyers need to break above 1230 dollars per ounce.


Source  
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