GOLD 1 OZ (XAU=X) higher prices are not necessary to sustain good mining projects

GOLD 1 OZ (XAU=X) higher prices are not necessary to sustain good mining projects

GOLD 1 OZ (XAU=X) higher prices are not necessary to sustain good mining projects

As gold hovers around $1,200 an ounce, one CEO says that higher prices are not necessary to sustain good mining projects, but may be needed to bring back investor sentiment.

“In my perspective, $1,200 gold is a good price…our project performs well at $1,000 gold, so I don’t see gold price as a problem. It may be a problem for investors to get their sentiment back into the gold sector and say hey, I want to be involved, this is a commodity that’s going up,” Jeff Pontius, CEO of Corvus Gold, told Kitco News on the sidelines of the of the 2018 Precious Metals Summit in Beaver Creek.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,220.35.

The projected lower bound is: 1,176.15.

The projected closing price is: 1,198.25.

Candlesticks

A black body occurred (because prices closed lower 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 23 white candles and 27 black candles for a net of 4 black candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with PREC.M.XAU=). It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 58.9568. This is not an overbought or oversold reading. The last signal was a sell 21 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 48.10. 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 25 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 32. This is not a topping or bottoming area. The last signal was a sell 0 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 22 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -7.670 at 1,199.090. Volume was -0% below average (neutral) and Bollinger Bands were 58% narrower than normal.

Open High Low Close Volume___
1,207.0701,211.0201,191.5101,199.090 0

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

Moving Averages: 10-period 50-period 200-period
Close: 1,200.00 1,205.95 1,283.64
Volatility: 9 12 11
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 6.6% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 15 periods.

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