The gold rally still has some ways to go despite its recent stumble.
We think gold’s run … hasn’t quite finished yet.
It comes back to interest rates. One of the best explanations of why gold has surged the way it has through this year have been bond yields.
Net of inflation or what we call real bond yields, those have been sort of on (a) one-way tear and that’s sort of lined up very nicely with move in gold.
Gold prices have had a stellar run so far in 2020, soaring to levels beyond $2,000 in early August. That hit a pause last week as prices of the precious metal fell below $2,000, with spot gold trading at $1,942.1405 per ounce Monday afternoon Singapore time.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 2,078.90.
The projected lower bound is: 1,942.21.
The projected closing price is: 2,010.56.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 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 68.6529. 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 62.32. 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 5 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 25. This is not a topping or bottoming area. The last signal was a buy 3 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 5 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 19.221 at 2,004.750. Volume was 8,900% above average (trending) and Bollinger Bands were 59% wider than normal.
Open High Low Close Volume 1,985.217 2,009.890 1,979.300 2,004.750 46,651
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,988.06 1,850.73 1,660.29 Volatility: 42 22 22 Volume: 4,665 933 233
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 20.7% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term.
Our volume indicators reflect very strong flows of volume into XAU= (bullish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 45 periods.