Gold is consolidating ahead of the Federal Reserve Chair Jerome Powell’s keynote address at the virtual Jackson Hole Symposium on Thursday, says TD Securities.
It is highly likely that Powell “pre-announce[s] the outcome of the Monetary Policy Framework Review, which suggests the formal adoption of average inflation targeting,” TD Securities strategists say.
This major shift in monetary policy will be beneficial for gold, which is why current weakness is a good buying opportunity, the strategists add. “The average inflation targeting framework represents a massive shift in the macroeconomic template that should continue to support inflation-hedge assets. As financial repression continues to suppress real rates, we expect that capital will seek shelter in precious metals — which suggests further weakness in the complex represents a buying opportunity.”
Overall, the bias in prices is: Upwards.
The projected upper bound is: 2,005.18.
The projected lower bound is: 1,854.68.
The projected closing price is: 1,929.93.
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 32 white candles and 18 black candles for a net of 14 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.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 21.3663. This is not an overbought or oversold reading. The last signal was a sell 12 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 49.02. 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 11 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 -69. This is not a topping or bottoming area. The last signal was a buy 9 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 11 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -2.000 at 1,925.940. Volume was 8,900% above average (trending) and Bollinger Bands were 39% wider than normal.
Open High Low Close Volume 1,928.074 1,931.093 1,923.810 1,925.940 16,632
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,948.11 1,875.19 1,674.19 Volatility: 29 25 22 Volume: 1,663 333 83
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 15.0% 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 1 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
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