The price of gold may rise further amid uncertainty over rising inflation and mass buy-ups by the world’s large gold funds.
Gold futures on Thursday extended a record rally to a fifth straight day, with a muted U.S. dollar and lackluster moves in equities supporting bullion’s ascent to near $2,100. “Gold price continues to skyrocket as demand for the precious metal surges,” wrote Shayne Heffernan, CEO and founder of Heffx.
December gold traded (GCZ20) $20.10, or 1%, higher to settle at $2,069.40 an oz.
Appetite for precious metals, as well as silver, has been resurgent, with both gold and silver futures and securities pegged to the commodities on a tear in recent weeks as the COVID-19 pandemic has delivered a seismic blow to international economies.
On Thursday, gold rose amid indecision by U.S. lawmakers over the path toward another coronavirus relief package, while weekly jobless claims data fell by 249,000 in early August to 1.19 million and touched the lowest level since the coronavirus pandemic began more than four months ago.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 1,883.38.
The projected upper bound is: 2,113.98.
The projected lower bound is: 2,028.88.
The projected closing price is: 2,071.43.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 35 white candles and 15 black candles for a net of 20 white candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 91.3909. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 20 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 89.93. 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 21 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 136.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 13 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 1.479 at 2,064.667. Volume was 8,900% above average (trending) and Bollinger Bands were 182% wider than normal.
Open High Low Close Volume 2,064.115 2,072.495 2,062.496 2,064.667 16,488
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,996.74 1,815.85 1,643.34 Volatility: 15 15 20 Volume: 1,649 330 82
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 25.6% 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 38 periods. Our momentum oscillator is currently indicating that XAU= is currently in an overbought condition.
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