Gold 1 OZ (XAU=X) hit their highest level in more than five months
Gold futures hit their highest level in more than five months Wednesday on continued safe-haven buying after the recent freefall in equities and speculation that the Federal Reserve will slow its pace of monetary tightening.
The metals were up even though the U.S. dollar index likewise climbed, trading up 0.278 point to 96.285.
Lower interest rates help gold several ways. First, they undercut the U.S. dollar, and precious metals tend to move inversely to the greenback. Lower rates also reduce gold’s so-called “opportunity cost,” which is the lost income from buying a non-yielding asset like gold, which does not pay interest income.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1,232.35.
The projected upper bound is: 1,287.05.
The projected lower bound is: 1,248.60.
The projected closing price is: 1,267.83.
A black body occurred (because prices closed lower 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 24 white candles and 26 black candles for a net of 2 black 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 75.7709. This is not an overbought or oversold reading. The last signal was a sell 0 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 67.83. 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 92 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 186.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 16 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -1.520 at 1,266.970. Volume was 8,900% above average (trending) and Bollinger Bands were 30% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,251.48 1,230.71 1,251.43
Volatility: 11 10 12
Volume: 1 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.
PREC.M.XAU= is currently 1.2% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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.