Gold 1 OZ (XAU=X) investors awaited minutes of the U.S. Federal Reserve’s March meeting

Gold 1 OZ (XAU=X) investors awaited minutes of the U.S. Federal Reserve’s March meeting

Gold 1 OZ (XAU=X) investors awaited minutes of the U.S. Federal Reserve’s March meeting

Though employment growth accelerated from a 17-month low in March, data on Friday showed slowdown in wage growth and job cuts in the manufacturing sector, the first decline in factory payrolls since July 2017.

The moderation in wage growth supported the Fed’s decision to suspend further interest rate increases this year.

Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.

The markets are now awaiting the minutes of the Federal Open Market Committee’s (FOMC) March policy meeting, due on Wednesday, for cues on Fed’s future monetary policy stance.

U.S. gold futures were also up 0.4 percent at $1,300.10 an ounce.

“The dollar index is pulling back from multi-week highs, ” said Shayne ‘Jack’ Heffernan, adding that a softer dollar was acting as a tailwind for gold.

“Though the non-farm payrolls data was better than expected, the manufacturing jobs fell which is a bad signal for the sector and doesn’t show a bright picture for the economic outlook.”

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,292.43.

The projected upper bound is: 1,319.24.

The projected lower bound is: 1,275.05.

The projected closing price is: 1,297.15.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 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 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 74.2116. 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 47.84. 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 32 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 -35. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 6 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 5.971 at 1,297.271. Volume was 8,900% above average (trending) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
1,291.4001,297.8631,291.1001,297.271 9,343

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

Moving Averages: 10-period 50-period 200-period
Close: 1,295.74 1,307.84 1,248.76
Volatility: 10 11 11
Volume: 934 187 47

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 3.9% 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 7 periods.

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