Gold 1 OZ (XAU=X) finding some support from weakness in the U.S. dollar but weighed down by strength in bond yields
Gold prices made modest moves in both directions Monday, finding some support from weakness in the U.S. dollar but weighed down by strength in bond yields, as investors assessed a phase one trade deal between the U.S. and China.
Gold for February delivery on Comex was down $1, or 0.07%, to $1,480.20 an ounce, trading between a low of $1,477.40 and a high of $1,484.50. March silver was up 2.8 cents, or 0.2%, at $17.04 an ounce.
President Donald Trump and Chinese officials on Friday announced an agreement on a preliminary U.S.-China trade pact. Gold gained ground in Friday’s session, however, boosted by a weaker U.S. dollar and a fall in Treasury yields. A weaker dollar makes commodities priced in the currency to cheaper to users of other currencies, while lower yields decrease the opportunity cost of holding nonyielding assets.
In Monday dealings, the ICE U.S. Dollar Index (DXY) edged down by 0.2% to 97.004. The 10-year Treasury note yield however, rose 5.1 basis points to 1.8689%, following the stock markets higher amid positive economic reports from China.
In other metals trading, March palladium (PAH20) rose 2.8% to $1,933.30 an ounce, while January platinum (PLF20) gained 0.3% to $931.30 an ounce.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,500.90.
The projected lower bound is: 1,449.83.
The projected closing price is: 1,475.36.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 52.8929. This is not an overbought or oversold reading. The last signal was a buy 3 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 52.91. 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 78 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 86. This is not a topping or bottoming area. The last signal was a sell 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 buy 11 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 0.157 at 1,475.715. Volume was 8,900% above average (trending) and Bollinger Bands were 57% 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: 1,470.77 1,478.75 1,410.19
Volatility: 11 11 14
Volume: 7,486 1,497 374
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 4.6% 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 0 periods.
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