Gold 1 OZ (XAU=X) market has been grinding higher
Gold markets are pulling back a bit during the trading session on Wednesday, reaching towards the $1325 level. If that level can hold, then a bounce back towards the $1350 level could happen. However, I see even more support underneath based upon the trend line, and of course under their based upon the 50 day EMA hanging about the $1300 level, which is a large come around, psychologically significant figure.
It’s not until we break down below the $1300 level that I would begin to be a bit concerned about Gold markets, or perhaps if we get some type of explosive move to the upside in the US Dollar Index. The dollar has been somewhat resilient, but while it has been okay, the gold market has been grinding higher. Why is this? It’s very likely that you are witnessing a lot of central bank buying, and a lot of concerns about inflation. In fact, the Federal Reserve has just suggested that they are comfortable with the higher inflation rate before raising rates again, meaning that we should naturally see a bit of a bid for precious metals overall.
We also have a lot of concerns about global growth, the economies of several countries around the world, and a whole host of other issues. With that, a lot of people will be looking to pick up gold for safety, and of course to preserve some of their wealth. I believe that the markets are going to continue to go higher, but we may get a little bit of a slight pullback from here.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,347.74.
The projected lower bound is: 1,305.23.
The projected closing price is: 1,326.49.
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 29 white candles and 21 black candles for a net of 8 white 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 28.6033. This is not an overbought or oversold reading. The last signal was a sell 5 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 57.13. 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 5 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 1. This is not a topping or bottoming area. The last signal was a sell 5 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 2 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 5.050 at 1,324.850. Volume was 8,900% above average (trending) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,327.77 1,299.95 1,246.90
Volatility: 12 10 11
Volume: 1,052 210 53
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 6.3% above its 200-period moving average and is in an upward 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 bullish on XAU= and have had this outlook for the last 59 periods.