Gold 1 OZ (XAU=X) Investors focus on Federal Reserve’s Economic Policy Symposium in Jackson Hole, Wyoming

Gold 1 OZ (XAU=X) Investors focus on Federal Reserve’s Economic Policy Symposium in Jackson Hole, Wyoming

Gold 1 OZ (XAU=X) Investors focus on Federal Reserve’s Economic Policy Symposium in Jackson Hole, Wyoming

Gold prices have been trading sideways the past few days, in line with our gold price weekly trading forecast. But now that the Federal Reserve’s Economic Policy Symposium in Jackson Hole, Wyoming is here, all that could change. Speeches by various central bank officials, but most prominently Fed Chair Jerome Powell, will likely spur acute price action across asset classes over the coming days – and there is a high probability that markets gap open after the weekend.

Whereas volatility has been trending lower in the run-up to the Fed’s Jackson Hole summit, it seems possible that volatility makes a return as traders reallocate capital ahead of what should be an exciting September for central banks: both the Fed and the European Central Bank are expected to cut rates, while the Reserve Bank of Australia may not be far behind.

Technical Indicators

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 1,421.00.

The projected upper bound is: 1,543.00.

The projected lower bound is: 1,459.23.

The projected closing price is: 1,501.12.

Candlesticks

A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 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 29.2441. This is not an overbought or oversold reading. The last signal was a sell 7 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 59.92. 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 4 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 -3. This is not a topping or bottoming area. The last signal was a sell 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -4.005 at 1,497.995. Volume was -0% below average (neutral) and Bollinger Bands were 81% wider than normal.

Open     High      Low     Close     Volume___
1,501.9001,504.4001,491.5001,497.995 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,506.38 1,433.67 1,322.53
Volatility: 14 19 13
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 13.3% 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 15 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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