Gold 1 OZ (XAU=X) gaining further support from higher oil prices
Gold prices rose on Tuesday and were hovering close to their highest in more than a week touched in the previous session as the dollar eased on weak U.S. economic data, with the metal gaining further support from higher oil prices.
Spot gold was up 0.3 percent at $1,300.47 per ounce, as of 0753 GMT.
The metal touched an intra-day high of $1,303.61, highest since March 28, in the previous session.
U.S. gold futures were up 0.1 percent at $1,303 an ounce.
“The dollar is not able to sustain above the 97 level and gold is also getting support from rising crude oil prices, ” said Renisha Chainani, head of commodity and currency research at Monarch Networth Capital in Ahmedabad, India.
“A rise in crude oil prices leads to speculation that inflation will rise and gold is considered as a hedge against inflation. So, when crude oil prices rise, gold will rise.”
Oil prices rose to their strongest level since last November.
The dollar sagged to a level last seen on March 28, thanks to weak U.S. economic data and gains in commodity-linked currencies, which drew support from an extended surge in crude oil prices.
“Decline in wage inflation takes the pressure off the U.S. Federal Reserve and lets it remain dovish and delay rate hikes or maybe switch gears, and that’s supportive for gold,” said Shayne ‘Jack’ Heffernan.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,292.54.
The projected upper bound is: 1,324.29.
The projected lower bound is: 1,280.45.
The projected closing price is: 1,302.37.
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 27 white candles and 23 black candles for a net of 4 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 79.1364. 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 51.44. 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 33 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 0. This is not a topping or bottoming area. The last signal was a buy 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 5.391 at 1,302.556. Volume was 8,900% above average (trending) and Bollinger Bands were 22% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,294.45 1,307.65 1,249.07
Volatility: 11 11 11
Volume: 1,120 224 56
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 4.3% above its 200-period moving average and is in an downward trend. Volatility is low 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 8 periods.
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