GOLD 1 OZ (XAU=X) edged up on a steady U.S. dollar

GOLD 1 OZ (XAU=X) edged up on a steady U.S. dollar

GOLD 1 OZ (XAU=X) edged up on a steady U.S. dollar

Gold prices edged up on a steady U.S. dollar early Tuesday, but expectations for further interest rate hikes in the United States supported the greenback and limited interest in the metal.

Gold prices have declined nearly 12% since mid-April, pressured by a stronger US dollar from an ongoing US-China trade dispute and amid expectations of higher interest rates in the US.

The US Federal Reserve is widely expected to raise benchmark lending rates, for the third time this year, at its next policy meet in September. Higher US rates tend to boost the dollar, making greenback-denominated gold more expensive for holders of other currencies.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 1,257.36.

The projected upper bound is: 1,227.20.

The projected lower bound is: 1,190.58.

The projected closing price is: 1,208.89.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black 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 25.5905. This is not an overbought or oversold reading. The last signal was a buy 0 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 34.40. 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 buy 2 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 -111.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 11 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 4.540 at 1,210.640. Volume was 8,900% above average (trending) and Bollinger Bands were 6% narrower than normal.

Open High Low Close Volume___
1,207.3001,216.1601,207.3001,210.640 17,775

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,217.39 1,254.99 1,296.34
Volatility: 9 9 11
Volume: 1,778 356 89

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 6.6% below its 200-period moving average and is in an downward 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 bearish on XAU= and have had this outlook for the last 35 periods.

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