Gold turned bearish

24 January, 2017

Traders have not changed their opinion preserving upbeat tone on Monday. The demand for the metal grew amid uncertainty around Trump's proposed fiscal policy measures. A weak sentiment surrounding equity markets lent some support to the precious metal as well.

Current situation

Gold turned bearish on Monday. The metal eased off from its daily high as traders decided to book some profits after the recent rally. The XAU/USD pair pushed away from 1220 dollars per ounce in the Asian session and reached 1210 in the mid-European one. The 50, 100 and 200 EMAs kept heading higher in the 4 hours chart. The resistance exists at 1220, the support stands at 1210 dollars per ounce.

The MACD histogram decreased which indicates the sellers’ strength. The RSI oscillator moved downwards.

Trading recommendations

The precious metal is likely to extend its bearishness. The price eyes strong support at 1200 loss of which would trigger further weakness towards 1190 dollars per ounce. To revive its buying momentum the metal needs to retake 1220.


Source  
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