Big banks optimistic for Gold 1 OZ (XAU=X) price

Big banks optimistic for Gold 1 OZ (XAU=X) price

Big banks optimistic for Gold 1 OZ (XAU=X) price

Even if the gold price is taking a breather, many experts are certain that a new price increase is imminent.

The trade dispute between China and the USA has eased somewhat. As a result, the price of this precious metal has fallen by around seven percent since the beginning of September. Nevertheless, analysts at major banks such as Goldman Sachs, UBS and Morgan Stanley remain very optimistic. 

Goldman Sachs, a US investment bank, continues to expect a gold price of 1,600 US dollars for 2020. The reasons are the political uncertainties that will continue to accompany the gold price and the prospect of a weakening economy. UBS, the major Swiss bank, expects the price of gold to stand at USD 1,600 in the new year. We are eagerly awaiting the next rise in precious metal prices.

The major US bank Morgan Stanley has just announced that it expects gold prices to rise further in 2020. This was due to a lower US dollar. According to Morgan Stanley, this is because higher growth rates can be expected outside the USA.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,470.38.

The projected upper bound is: 1,486.27.

The projected lower bound is: 1,423.88.

The projected closing price is: 1,455.08.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 22.6075. This is not an overbought or oversold reading. The last signal was a sell 4 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 39.00. 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 65 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 -86. This is not a topping or bottoming area. The last signal was a buy 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -5.368 at 1,455.832. Volume was 8,900% above average (trending) and Bollinger Bands were 1% wider than normal.

Open     High      Low     Close     Volume___
1,461.2501,461.7251,452.1001,455.832 74,996
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,465.03 1,487.50 1,399.81
Volatility: 7 13 15
Volume: 7,500 1,500 375

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 4.0% 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 out of XAU= (bearish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 14 periods.

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