Commodity prices traded lower in the week gone by with crude oil prices falling the most at more than 10 percent while Natural gas rallied by nearly 12 percent on strong winter demand. Base metals traded under pressure on lockdown in Europe amid worries over a surge in virus cases. Bullion prices ended in red despite some recovery in the last trading session amid stronger dollar-dominated price fluctuations ahead of US Presidential Elections. The greenback rallied above 74 mark gaining 1.37 percent for the week against the major currencies.
Bullion prices traded lower with a rally in dollar index ahead of US Presidential Elections despite concerns over slower economic growth after France and Germany imposed lockdown for one month shutting around 80 percent of economic activities. COMEX spot gold prices ended 1 percent down at $1878 per ounce witnessing some recovery in last trading session. Spot silver prices at COMEX plunged by nearly 4 percent to $23.66 per ounce during the week with added pressure from weak base metals. Bullion prices at MCX capped downside supported by weaker rupee which fell by around 49 paisa against the dollar for the week.
Bullion prices are expected to trade in current range as uncertainty over US election may cap upside with safe-haven buying in Yen and Dollar. On contrary, fear of lockdown in the US on record virus cases and economic growth concerns may limit downside in precious metals. COMEX spot gold prices have strong resistance at $1940 to break to resume the uptrend, near term support lies at $1850 and $1836 per ounce. COMEX spot silver prices have near term support at $21 per ounce, resistance at $26 per ounce.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,896.25.
The projected upper bound is: 1,932.48.
The projected lower bound is: 1,829.26.
The projected closing price is: 1,880.87.
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 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 31.5610. This is not an overbought or oversold reading. The last signal was a sell 19 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 44.56. 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 59 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 -106.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 3 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 3.930 at 1,881.880. Volume was 8,900% above average (trending) and Bollinger Bands were 53% narrower than normal.
Open High Low Close Volume 1,877.345 1,885.255 1,872.650 1,881.880 10,525
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,894.83 1,914.59 1,771.60 Volatility: 14 17 23 Volume: 1,053 211 53
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 6.2% 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 2 periods.