Gold is unlikely to end its bull market any time soon, according to Commerzbank. “In our opinion, the gold price is a long way from ending its upswing.
The problems we currently face are simply too manifold: be it the rapidly rising national debt levels, the unchecked printing of money by central banks, the persistently extremely low interest rates, and the numerous political risks,” Commerzbank commodity analyst Carsten Fritsch writes. The biggest risk in Q4 is the U.S. election, Fritsch notes.
Also, there is a chance of Brexit without a trade deal and rising geopolitical tensions. On top of that, ETF investors are continuing to increase their gold holdings.
“Inflows totalled 54 tons in September and 240 tons in the third quarter as a whole. This was the tenth monthly inflow and the eighth quarterly inflow in a row,” Fritsch adds.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,987.09.
The projected lower bound is: 1,823.73.
The projected closing price is: 1,905.41.
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.
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 82.4967. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 47.41. 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 -20. 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 19.609 at 1,905.049. Volume was -0% below average (neutral) and Bollinger Bands were 2% narrower than normal.
Open High Low Close Volume 1,885.500 1,911.660 1,883.890 1,905.049 0
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,892.22 1,945.60 1,733.25 Volatility: 20 27 23 Volume: 0 0 0
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 9.9% 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 into XAU= (bullish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 27 periods.