Gold 1 OZ (XAU=X) gains as lack of details on trade deal lifts demand

Gold 1 OZ (XAU=X) gains as lack of details on trade deal lifts demand

Gold 1 OZ (XAU=X) gains as lack of details on trade deal lifts demand

Gold prices rose on Friday as investors remained cautious about the developments in the United States and China trade negotiations, while political uncertainties in the world’s biggest economy further boosted the metal’s safe-haven appeal. Spot gold was up 0.5% at $1,477.09 per ounce by 1:42 p.m ET (1842 GMT) and with gains of more than 1.2% so far this week, the yellow metal is on track for its best week in nearly three-months.

U.S. gold futures settled up 0.6% at $1,481.20. China will likely hit $50 billion in purchases of U.S. agricultural products, U.S. President Donald Trump said on after earlier announcing that he would roll back scheduled tariffs on Chinese imports as Washington and Beijing finalized an initial trade deal.

“Although there seems to be some progress, the lack of details is causing a lot of concern that we’re not as far along in the trade deal as people would like and as a result we are getting a flight to safety,” said Shayne Heffernan, CEO and Founder of Heffx.

Stocks swung between gains and losses, as investors were confused about signs of progress despite positive comments from both sides.

“The fact that gold is trading near $1,475 shows that there is still good interest in gold market… Although we have seen some risk appetite emerging on the back of phase one trade deal, other uncertainties continue to linger around U.S. political outlook,” Standard Chartered Bank analyst Suki Cooper said.

A Democratic-controlled U.S. House of Representatives committee approved charges of abuse of power and obstruction against Republican President Donald Trump on Friday, making it almost certain he will become the third American president in history to be impeached.

The dollar fell against a basket of currencies helping dollar-denominated gold edge higher.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,500.90.

The projected lower bound is: 1,449.06.

The projected closing price is: 1,474.98.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 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 56.6197. This is not an overbought or oversold reading. The last signal was a buy 2 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 52.82. 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 77 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 58. This is not a topping or bottoming area. The last signal was a sell 5 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 buy 10 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 6.229 at 1,475.559. Volume was -0% below average (neutral) and Bollinger Bands were 59% narrower than normal.

Open     High      Low     Close     Volume___
1,469.3751,477.7461,462.1601,475.559 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,469.43 1,479.11 1,409.30
Volatility: 11 11 14
Volume: 0 0 0

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 4.7% above 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 26 periods.

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