The price of gold rose slightly today to $1,210 after the sharp decline last week. What can traders expect next? The following XAUUSD technical analysis reveals.
November 12, OctaFX – Gold received some support in the Asian session after the slide that happened on Friday. Last week, it had the worst week in more than three months after the Federal Reserve eyed more rate increases.
In the monetary policy decision last week, the Fed said that the economy was strong and was capable of accommodating multiple rate hikes. Rate hike expectations often lead to a stronger dollar and weaker gold because the latter offers no yield.
XAUUSD Technical Analysis
Gold rose slightly today after the sharp decline last week. Starting from last month, its price has gained from $1180 to a high of $1243. The XAUUSD pair is now trading at 1210, which is slightly higher than Friday’s close of 1206.
This price is below the 30 and 15-day EMA. The RSI has fallen to 28, which is considered an oversold position. However, this has happened with the volumes being low, which means that the pair will likely continue with the decline. If it does, it could test the important 1200 level.
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