Gold 1 OZ (XAU=X) is awaiting more clarification on the US/China trade front
Gold futures settled higher on Tuesday, giving up earlier losses as weakness in U.S. Treasury yields helped to lift prices for the precious metal for a second session in a row.
Still, gold found little reason to make a big move higher as muted optimism for a partial U.S.-China trade pact dulled some appetite for bullion, a day ahead of minutes from the Federal Reserve’s October monetary policy meeting.
The 10-year benchmark note (BX:TMUBMUSD10Y) yielded around 1.7791% in Tuesday dealings, down from 1.808% Monday. The ICE U.S. Dollar Index (DXY) traded little changed from Monday, while U.S. benchmark stock indexes saw mixed trading.
December gold (GCZ19) on Comex rose $2.40, or 0.2%, to settle at $1,474.30 an ounce, after gaining 0.2% on Monday. December silver (SIZ19) meanwhile, added 11.8 cents, or 0.7%, to $17.118 an ounce, adding to its 0.3% rise, a day ago.
Meanwhile, the U.S. central bank will release minutes from its October policy meeting on Wednesday, after the settlement for gold futures prices.
Fed Chairman Jerome Powell has signaled that Fed policy is on hold at least through the end of this year. Gold tends to benefit from looser monetary policy.
New York Fed President John Williams on Tuesday said the economy is clearly facing several challenges, primarily from overseas, but the three rate cuts since July should help sustain growth.
Among other metals traded on Comex, December copper (HGZ19) added 1.4% to $2.6565 a pound. January platinum (PLF20) tacked on 1.9% to $912.30 an ounce and December palladium (PAZ19) settled at $1,737.40 an ounce, up 1.9%.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,471.13.
The projected upper bound is: 1,503.38.
The projected lower bound is: 1,439.42.
The projected closing price is: 1,471.40.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 81.6078. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 44.70. 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 59 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 -29. This is not a topping or bottoming area. The last signal was a buy 4 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 8 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 0.923 at 1,471.676. Volume was 8,900% above average (trending) and Bollinger Bands were 5% 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: 1,467.26 1,491.66 1,395.54
Volatility: 11 14 15
Volume: 8,633 1,727 432
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 5.5% 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 8 periods.
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