Gold 1 OZ (XAU=X) closes near 3-month high, clinches longest win streak in about 6 months

Gold 1 OZ (XAU=X) closes near 3-month high, clinches longest win streak in about 6 months

Gold 1 OZ (XAU=X) closes near 3-month high, clinches longest win streak in about 6 months

Gold prices clinched a 5-day win streak, its longest in about 6 months, while settling near a three-month high as investors got ready for the end of 2019 with one day remaining in trade.

Bullion’s value has been partially supported by apparent progress toward a scaledown of the Sino-American trade war but fears that President Donald Trump’s administration may scuttle any partial agreement at the last minute have helped to draw bids and limit losses for haven metals, market experts said.

Chinese Vice-Premier Liu He is set to travel to Washington on Saturday, where he is expected to sign the limited trade deal agreed to earlier this month with the Trump administration, the South China Morning Post reported Monday.

“It is only fears of Trump withdrawing from the trade deal that is preventing gold and silver from a crash,” wrote Chintan Karnani, chief market analyst at Insignia Consultants, in a Monday research report.

Gold for February delivery GCG20, -0.01% on Comex added 50 cents, or less than 0.1%, to settle at $1,518.60 an ounce, after the metal on Friday touched its highest level for the most-active contract since Sept. 24 when it closed at $1,540.20, according to FactSet data. That marked its fifth-straight gain, or the longest win streak for gold in about six months, dating back to an eight-session win streak ended June 7, according to FactSet data.

For the year, gold has gained 18.5%, while silver had advanced 15.6% thus far in 2019.

Gold also was finding some support after the Trump administration warned of potential “additional actions” following U.S. military airstrikes in Iraq and Syria on Sunday against an Iran-backed militia group, which was blamed for killing an American civilian contractor on an Iraqi military base.

“Another factor contributing to the rally in gold is the U.S. airstrikes carried out in Iraq and Syria against Iranian-backed groups,” wrote Lukman Otunuga, senior research analyst at FXTM in a daily note Monday.

“If geopolitical tensions increase in the Middle East, there will be more reasons for investors to increase their allocation in gold, otherwise the gold rally makes little sense while equities are making record highs.”

Gold and other dollar-pegged commodities have benefited from some weakness in the U.S. dollar over the past three months. One measure of greenback, the ICE U.S. Dollar Index DXY, -0.16%, a gauge of the buck against a half-dozen rivals, has declined 2.7% over the quarter, despite its 0.5% year-to-date gain. A weaker dollar can make assets priced in the currency more attractive to buyers using other monetary units.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,540.44.

The projected lower bound is: 1,490.30.

The projected closing price is: 1,515.37.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white 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 93.3437. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 13 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 72.08. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 88 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 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 16 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 21 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 4.344 at 1,514.760. Volume was 8,900% above average (trending) and Bollinger Bands were 13% wider than normal.

Open     High      Low     Close     Volume___
1,511.3901,516.2001,509.8601,514.760 82,701
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,492.75 1,478.86 1,419.59
Volatility: 7 11 14
Volume: 8,270 1,654 414

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.

Summary

PREC.M.XAU= is currently 6.7% above its 200-period moving average and is in an upward 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 bullish on XAU= and have had this outlook for the last 10 periods. Our momentum oscillator is currently indicating that XAU= is currently in an overbought condition.

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