Gold futures fell Thursday to settle at their lowest level in a week, as some traders look to the precious metal to cover losses in other assets on the heels of a drop in U.S. benchmark stock indexes.
U.S. stock indexes traded sharply lower, poised to erase their gains for the week. Sharp losses in the stock market can send traders scrambling to cover losses by selling other assets, such as gold.
Gold had struggled for direction early Thursday, pressured by a fall in weekly U.S. jobless claims, but had also found some support from data showing a monthly jump in the U.S. trade deficit.
Gold is still trading above $1,900 and this is keeping the hope alive for the price to target the $2,000 mark.
Bullion has been boosted by economic uncertainty stoked by the pandemic and by the outsize monetary efforts implemented by central bank’s to stem the harm to business activity across the world, but a cure or treatment for the deadly disease could dislodge gold from its bullish perch.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 2,023.21.
The projected lower bound is: 1,865.78.
The projected closing price is: 1,944.49.
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 32 white candles and 18 black candles for a net of 14 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 27.5244. This is not an overbought or oversold reading. The last signal was a sell 2 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 50.33. 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 18 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 -58. This is not a topping or bottoming area. The last signal was a sell 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 18 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 10.564 at 1,941.083. Volume was 8,900% above average (trending) and Bollinger Bands were 13% narrower than normal.
Open High Low Close Volume 1,931.105 1,941.132 1,925.538 1,941.083 13,121
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,946.14 1,903.09 1,691.47 Volatility: 19 26 23 Volume: 1,312 262 66
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 14.8% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods.
Our volume indicators reflect very strong flows of volume into XAU= (bullish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 8 periods.