The precious metal is posting a negative movement after the bounce off the $1,288 resistance level as it failed to hit again the $1,306 obstacle. On a weekly basis, the XAU/USD pair is still developing in an uptrend since December 2016 and edged sharply higher more than 8.8%. The next level to watch to the downside is the $1,261 - $1.263 support zone. In addition, the price is trading within a narrow range over the last three weeks with upper boundary the $1,288 resistance level and lower boundary the $1,263 support barrier.
On the daily chart, the yellow metal plunged below the bearish crossover within the 50 and 100 SMAs signaling for further sell-off, while the technical indicators are remaining below their mid-levels and are moving with weak momentum. The RSI indicator is moving below the 50 level and the MACD oscillator is slightly rising in the negative area.
