Gold prices continue to struggle for direction as consumer inflation pressures rose in line with expectations, September.
Tuesday, the U.S. Labor Department said its U.S. Consumer Price Index rose 0.2% last month, after a 0.4% rise in August. The data in line with consensus forecasts.
For the year headline consumer inflation rose 1.4%, the report said that core inflation rose 1.7% for the year, unchanged from August’s annual rise.
Stripping out volatile food and energy prices, core inflation also increased 0.2% last month, following August’s rise of 0.4%. Economists were expecting to see a 0.2% rise. The report said that
The gold market is seeing little reaction to the latest inflation data. December gold futures last traded at $1,927.60 an ounce, roughly unchanged on the day.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,897.14.
The projected upper bound is: 1,971.69.
The projected lower bound is: 1,811.02.
The projected closing price is: 1,891.36.
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 26 white candles and 24 black candles for a net of 2 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 46.6780. 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 46.62. 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 46 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 -18. This is not a topping or bottoming area. The last signal was a sell 1 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 3.442 at 1,894.260. Volume was 8,900% above average (trending) and Bollinger Bands were 32% narrower than normal.
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,901.05 1,932.90 1,749.60 Volatility: 21 26 23 Volume: 2,215 443 111
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 8.3% above its 200-period moving average and is in an downward 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 out of XAU= (bearish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 36 periods.