Comex gold settled 1.28 per cent lower at $1,788.10 per ounce on Friday. At this level, the benchmark is 14.82 per cent off an all-time high of $2,099.20 per ounce.
Comex silver ended 3.44 percent lower at $22.64 per ounce on the same day.
Gold is rangebound as support from rising coronavirus cases, mixed economic data, and hopes of additional stimulus measures are countered by progress on the vaccine front, exchange-traded fund (ETF) outflows, and easing political uncertainty in the US.
“Gold’s fall has stalled near the key $1800/oz level and we may see some consolidation amid lack of fresh triggers,” he added.
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 1,869.22.
The projected upper bound is: 1,843.90.
The projected lower bound is: 1,716.43.
The projected closing price is: 1,780.16.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 14.2238. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 29.60. This is where it usually bottoms. 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 79 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 -130.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 13 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -5.369 at 1,782.760. Volume was 8,900% above average (trending) and Bollinger Bands were 33% wider than normal.
Open High Low Close Volume 1,788.550 1,789.638 1,780.710 1,782.760 2,860
Technical Outlook Short Term: Oversold Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 1,831.80 1,882.59 1,799.55 Volatility: 13 21 25 Volume: 286 57 14
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 0.9% below its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on XAU= and have had this outlook for the last 9 periods. Our momentum oscillator is currently indicating that XAU= is currently in an oversold condition.