Gold futures rebounded from early session weakness on Friday to close higher for the session. The two-sided price action was generated as fears over business disruptions due to another record-breaking rise in COVID-19 cases at home drove up the possibility of additional fiscal and monetary stimulus.
Traders were additionally watching the price action in the U.S. dollar Index, which was being influenced by the movement in the euro as traders expected the outcome of discussions at a European Union summit that market participants hope will advance a recovery fund that would help raise the EU out of recession.
On Friday, August Comex gold settled at $1810.00, up $9.70 or +0.54%.
Gold traders also are watching risk sentiment, following a divergence between NASDAQ Composite and the S&P 500 Index and Dow Jones Industrial Average. Falling U.S. Treasury yields are also helping to underpin gold prices.
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 1,733.52.
The projected upper bound is: 1,845.66.
The projected lower bound is: 1,775.77.
The projected closing price is: 1,810.72.
A black body occurred (because prices closed lower 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 31 white candles and 19 black candles for a net of 12 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 58.7977. This is not an overbought or oversold reading. The last signal was a sell 6 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 64.55. 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 7 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 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 sell 1 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -0.435 at 1,808.465. Volume was 8,900% above average (trending) and Bollinger Bands were 47% narrower than normal.
Open High Low Close Volume 1,808.580 1,810.625 1,805.000 1,808.465 20,289
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,804.11 1,749.66 1,610.58 Volatility: 9 13 19 Volume: 2,029 406 101
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 12.3% 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 24 periods.