GOLD 1 OZ (XAU=X) limited the gains for the precious metal

GOLD 1 OZ (XAU=X) limited the gains for the precious metal

GOLD 1 OZ (XAU=X) limited the gains for the precious metal

Gold futures edged up Tuesday to mark another finish at their highest since July, but a rally in the U.S. stock market limited the gains for the precious metal.

Against a backdrop of relatively stable trading for a leading dollar index, December gold GCZ8, -0.28% rose 70 cents, or less than 0.1%, to settle at $1,231 an ounce. Prices had pulled back from a high of $1,235.90, but the settlement was still the highest since July 31, according to FactSet data.

Meanwhile, December silver futures SIZ8, -0.35% moved down by 2.6 cents, or 0.2%, to $14.701 an ounce, easing back after posting a climb in each of the past three sessions.

Gold was up 2.8% so far for October, trimming its year-to-date drop to close to 6.1%, based on the most-active contracts.

This rally began when the mood among gold market-timers was already surprisingly upbeat. According to contrarian analysis, this means that the current rally is likely to quickly fizzle.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,251.35.

The projected lower bound is: 1,198.60.

The projected closing price is: 1,224.97.

Candlesticks

A black body occurred (because prices closed lower 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 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 83.0667. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 38 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 60.98. 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 buy 42 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 149.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 4 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 buy 8 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -1.850 at 1,224.690. Volume was 8,900% above average (trending) and Bollinger Bands were 15% wider than normal.

Open High Low Close Volume___
1,226.7201,232.3701,222.9501,224.690 17,824

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

Moving Averages: 10-period 50-period 200-period
Close: 1,206.23 1,198.96 1,276.37
Volatility: 18 14 12
Volume: 1,782 356 89

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 4.0% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 2 periods.

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