Gold futures finished lower for Wednesday’s session, contributing a loss for the month as prices responded to a strengthening U.S. dollar that was been weighing on commodity prices.
The bullion, however, tallied an eighth straight quarterly gain, buoyed by haven demand for the precious metal.
On Wednesday, December gold GCZ20, -0.05% retreated $7.70, or 0.4%, to settle at $1,895.50 an ounce. December silver SIZ20, 0.43% lost 95 cents, or 3.9%, to end at $23.494 an ounce.
For the month, gold lost 4.2%, but advanced 5.2% over the three-month period ended in September, according to Dow Jones Market Data, tracking the most-active contract. Meanwhile, silver shed nearly 18% in September, but rallied by 26% for the quarter.
More recently, gold’s value has waxed and waned in lockstep with the dollar.
A resurgence in the greenback is viewed by commodity investors as making purchasing the yellow metal less compelling for overseas buyers and undercutting demand. The dollar was up 1.8% month to date, as measured by the ICE U.S. Dollar Index DXY.
The move for the dollar comes after an acrimonious presidential debate between President Donald Trump and former Vice President Joe Biden, as the race for the White House heats up in the U.S., leading up the Nov. 3 election.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,969.66.
The projected lower bound is: 1,807.12.
The projected closing price is: 1,888.39.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 77.2361. This is not an overbought or oversold reading. The last signal was a buy 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.08. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 37 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -44. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 2.920 at 1,888.360. Volume was 8,900% above average (trending) and Bollinger Bands were 0% narrower than normal.
Open High Low Close Volume 1,885.500 1,890.969 1,883.890 1,888.360 17,325
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,890.55 1,945.27 1,733.17 Volatility: 19 26 23 Volume: 1,733 347 87
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
PREC.M.XAU= is currently 9.0% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect very strong flows of volume out of XAU= (bearish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 27 periods.