Gold refreshed daily lows during the early European session, albeit quickly recovered thereafter. The commodity was last seen trading with modest daily gains, just below the $1885 level.
The selling bias surrounding the US dollar picked up the pace on the first day of a new trading week after the US President Donald Trump signed a $2.3 trillion COVID-19 relief and government funding bill. This was seen as one of the key factors that provided a modest lift to the dollar-denominated commodity and pushed spot prices to four-day tops.
The uptick, however, lacked any follow-through and faltered near the $1900 round-figure mark. The US stimulus added to the latest Brexit optimism and boosted investors’ confidence. This was evident from a positive trading sentiment around the equity markets, which turned out to be a key factor that capped gains for the safe-haven XAU/USD.
Despite the two-way price moves, the yellow metal remained well within the last week’s broader trading range. This, in turn, warrants some caution for aggressive traders and makes it prudent to wait for a sustained move in either direction before positioning for a firm near-term trajectory amid holiday-thinned liquidity conditions.
There isn’t any major market-moving economic data due for release from the US. Hence, the broader market risk sentiment and the USD price dynamics might continue to play a key role in influencing the XAU/USD. Apart from this, developments surrounding the coronavirus saga might further assist traders to grab some short-term opportunities.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,937.07.
The projected lower bound is: 1,812.69.
The projected closing price is: 1,874.88.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.
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 37.5045. This is not an overbought or oversold reading. The last signal was a sell 6 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 54.53. 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 buy 20 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 50. This is not a topping or bottoming area. The last signal was a sell 5 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 buy 17 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 4.310 at 1,875.500. Volume was 8,900% above average (trending) and Bollinger Bands were 31% narrower than normal.
Open High Low Close Volume 1,871.860 1,882.360 1,870.050 1,875.500 14,186
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,873.76 1,866.50 1,827.28 Volatility: 11 21 21 Volume: 1,419 284 71
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 2.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect very strong flows of volume out of XAU= (bearish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 9 periods.