Gold 1 OZ (XAU=X) jumped to a two-week high, after American Dollar had stumbled following release of soft economic data

Gold 1 OZ (XAU=X) jumped to a two-week high, after American Dollar had stumbled following release of soft economic data

Gold 1 OZ (XAU=X) jumped to a two-week high, after American Dollar had stumbled following release of soft economic data

Spot gold price jumped to a two-week high, after American Dollar had stumbled following release of soft economic data despite a roaring quarterly growth on its gross domestic product.

Gold for immediate selling had rounded off the day 0.7 percent higher at $1285.85 per ounce after breaching its highest levels since April 16th at $1288.59 during the intra-day trading on Friday (April 26th). Besides, the spot gold price had also posted a weekly gain of 1 percent, after tumbling for four straight weeks in a row, while US gold futures had closed the day at $1288.80 an ounce.

According to multiple analysts, economists and traders, the rise of spot gold price on Friday (April 26th), was largely feathered by a weaker US dollar index, which hit a nearly two year high at 98.39 earlier in the week.

Nevertheless, followed by a much softer US economic data including trembling data on inflation, a slight inversion of US Treasury Yield Curve, a declined personal consumption and spending, the American dollar slid despite an upbeat GDP growth by 3.2 percent over the first quarter of 2019.

However, analysts were suggesting that the surprising US GDP growth was momentary and would likely to reverse in a near-term outlook, as it was resulted by a large stockpile of US unsold goods, its biggest since 2015, amid a bunch of tariff abrasions across the world.

Among other precious metals, spot silver price rose to 0.8 percent to $15.06 after hitting a multi-month low at $14.76 earlier in the week, while Palladium soared 3.5 percent to $1464.50 an ounce, its highest level since March 27th and Platinum added 1.4 percent to $894.50 per ounce on Friday’s (April 26th) market closure.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,288.56.

The projected upper bound is: 1,307.97.

The projected lower bound is: 1,262.66.

The projected closing price is: 1,285.32.

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 25 white candles and 25 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 75.6175. This is not an overbought or oversold reading. The last signal was a buy 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 47.59. 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 45 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 -12. This is not a topping or bottoming area. The last signal was a buy 2 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 8 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 8.900 at 1,285.850. Volume was -0% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open High Low Close Volume___
1,277.0151,288.5931,275.6501,285.850 0

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

Moving Averages: 10-period 50-period 200-period
Close: 1,278.71 1,300.38 1,251.23
Volatility: 7 11 11
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 2.8% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 20 periods.

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