Gold 1 OZ (XAU=X) investors eyeing consumer confidence and on U.S.-China trade talks
Gold futures rebounded modestly on Tuesday, as investors kept a close eye on consumer confidence and on U.S.-China trade talks.
Gold for December delivery (GCZ19) on Comex gained $3.40, or 0.2%, to settle at $1,460.30 an ounce, after opening largely flat, while December silver (SIZ19) edged 15 cents higher to $17.04 an ounce.
“The action today is probably rebounding off the recent lows,” said Matthew Pierce, director of research at The Wealth Consulting Group in Las Vegas. “Gold has been finding support around the $1,450-ish level, a couple of times since it eclipsed $1,500 an ounce this fall.”
Market players also were monitoring the tone among U.S. consumers ahead of Black Friday, the traditional start of the holiday shopping season, which kicks off the day after Thanksgiving.
While fresh data showed U.S. consumer confidence fell for the fourth month in a row in November, pulling the consumer confidence index down to 125.5 from a revised 126.1 in October, the overall picture of the U.S. economy still looks healthy.
“Consumers are feeling pretty good, which bodes well for the holidays and should be good for sales,” said Phil Flynn, senior market analyst at The Price Futures Group in Chicago, in an interview.
“But the biggest negative that we’ve see on metals this week,” has said, has been optimism over a partial agreement to resolve the U.S. and China trade dispute. “But having said that, we still don’t have a deal.”
U.S. President Donald Trump said Tuesday during an Oval Office event that Washington and Beijing were nearing a trade deal, while also offering support for Hong Kong after pro-democracy parties scored victories in weekend elections.
Federal Reserve Chairman Jerome Powell, in remarks Monday evening, outlined an optimistic view of the U.S. economy but signaled that low inflation would likely keep rates low.
Oil prices also edged slightly higher Tuesday amid trade optimism. West Texas Intermediate crude futures for January delivery (CLF20) were little changed at $58.06 a barrel on the New York Mercantile Exchange. January Brent (UK:BRNF20) the global benchmark, gained 14 cents, or 0.2%, to trade at $63.79 a barrel on ICE Futures Europe.
In other metals trade, January platinum (PLF20) rose 1.2% to $911.70 an ounce, while December palladium (PAZ19) gained 0.6% at $1,782.30 an ounce.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,470.83.
The projected upper bound is: 1,491.68.
The projected lower bound is: 1,429.06.
The projected closing price is: 1,460.37.
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 25 white candles and 25 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 24.1236. This is not an overbought or oversold reading. The last signal was a sell 3 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 41.47. 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 64 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 -82. This is not a topping or bottoming area. The last signal was a buy 0 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 1 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 6.317 at 1,461.190. Volume was 8,900% above average (trending) and Bollinger Bands were 2% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,465.74 1,488.25 1,399.23
Volatility: 7 13 15
Volume: 7,834 1,567 392
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 4.4% 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 13 periods.