Gold 1 OZ (XAU=X) dips on firm dollar
Gold slipped to its lowest in almost a month on Monday as a firm dollar and greater risk appetite outweighed support from an expected pause to increases in U.S. interest rates.
Spot gold was 0.1 percent down at $1,279.99 an ounce, having touched its lowest since Dec. 28 at $1,276.31. U.S. gold futures were down 0.2 percent at $1,279.80.
“Some calm has been restored in the equities market … We are seeing a bit of withdrawal of interest from the gold market,” said Macquarie commodity strategist Matthew Turner.
World markets showed some relief from Chinese economic data in line with expectations and offered some bright spots, though concerns about British Prime Minister Theresa May’s Brexit plans prompted some caution.
U.S. markets were closed on Monday for a public holiday.
“Gold could already find itself in increased demand today if the UK prime minister’s ‘Plan B’ for Brexit turns out to contain nothing new and the chaos thus continues,” Commerzbank analysts wrote.
The dollar rise within sight of a two-week high weighed on gold, which has climbed more than 10 percent since mid-August, largely because of equity market turmoil and a weak dollar.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,298.52.
The projected lower bound is: 1,263.35.
The projected closing price is: 1,280.94.
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 28 white candles and 22 black candles for a net of 6 white candles.
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 21.7528. This is not an overbought or oversold reading. The last signal was a sell 11 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 53.83. 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 -186.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 11 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -1.580 at 1,279.530. Volume was 8,900% above average (trending) and Bollinger Bands were 31% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,287.81 1,252.31 1,247.00
Volatility: 8 9 11
Volume: 1,405 281 70
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 2.6% above its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on XAU= and have had this outlook for the last 31 periods.