XAU/USD picks up, nears $4,900 in risk-off markets 

The 4-hour chart shows XAU/USD trading at $4,876, capped below the 100-period Simple Moving Average (SMA), but with technical indicators suggesting an improving momentum. The Moving Average Convergence Divergences (MACD) negative histogram is contracting, and the MACD line seems about to close above the signal line. The Relative Strength Index has reached a neutral area coming from bearish levels.

The immediate trend remains negative, but Thursday‘s higher low gives some hope for bulls. The upward turning indicators suggest that the pair would be in a CD leg of a Gartley pattern, aiming towards the 78.6% Fibinacci resistance of last week’s sell off, at $5,340.

Before that, however, the precious metal is likely to find resistance at the mentioned 100-period SMA, now around $4,920, and at the weekly high, in the area of $5,100. Support levels are at session lows of $4,655, and Mondays low, at the $4,400 area.