Gold 1 OZ (XAU=X) higher with a slide in U.S. Treasury yields
Gold futures climbed on Tuesday, with a slide in U.S. Treasury yields helping the haven metal recoup more than a third of what it lost a day earlier, when a rally in the U.S. stock market prompted some settling in bullion.
Gold for December delivery GCZ19, +0.34% rose $4.10, or 0.3%, to settle at $1,515.70 an ounce, after the commodity gave up $12, or 0.8%, Monday. September silver SIU19, +1.12% picked up 20.8 cents, or 1.2%, to $17.148 an ounce, following a 1.1% loss a day earlier.
Precious metals gained some altitude as bond yields edged lower, providing some impetus for metals buying. The 10-year Treasury note yield TMUBMUSD10Y, -3.63% was down about 4.5 basis points to 1.5529% as gold futures settled Tuesday. Meanwhile, U.S. stocks traded broadly lower.
Lower debt yields can make gold and other precious assets comparatively more attractive because metals don’t carry a coupon.
Gold has maintained its grip on the $1,500 an ounce level, which many technical analysts view as a bullish signal.
Assets perceived as havens, like gold and bonds, have enjoyed a price run higher because investors have been worried that economic warnings signs point to a coming recession in the U.S., one that compels the Federal Reserve to further lower interest rates after a July 31 rate reduction.
Minutes from the Federal Reserve’s July 31 rate-setting committee will be watched when published Wednesday for signs that the central bank will be as dovish as the market is hoping. Wall Street is pricing in a nearly 100% chance of another interest rate cut when the Fed concludes its two-day policy meeting Sept. 18.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 1,420.72.
The projected upper bound is: 1,551.05.
The projected lower bound is: 1,467.71.
The projected closing price is: 1,509.38.
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 28 white candles and 22 black candles for a net of 6 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 42.5474. This is not an overbought or oversold reading. The last signal was a sell 5 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 63.26. 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 2 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 38. This is not a topping or bottoming area. The last signal was a sell 5 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 0 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 10.800 at 1,505.800. Volume was 8,900% above average (trending) and Bollinger Bands were 103% wider 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: 1,506.35 1,427.15 1,319.54
Volatility: 17 19 13
Volume: 3,011 602 151
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 14.1% above its 200-period moving average and is in an upward trend. Volatility is high 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 13 periods.