Gold 1 OZ (XAU=X) on track for a sixth straight quarterly rise

Gold 1 OZ (XAU=X) on track for a sixth straight quarterly rise

Gold 1 OZ (XAU=X) on track for a sixth straight quarterly rise

Gold prices dipped over 2% to their lowest in a week on Tuesday as the dollar firmed, but the metal was on track for a sixth straight quarterly rise on concerns of global economic damage due to the coronavirus pandemic.

Spot gold fell 0.8% at $1,609.64 per ounce. U.S. gold futures lost 0.6% to $1,611.60.

“The mood across markets seems to be improving as investors take comfort from the positive economic data from China.

However, a sense of caution still lingers in the air which is stimulating appetite for the dollar,” said FXTM analyst Lukman Otunuga.

Investors cheered as strong Chinese factory data held out hope for an economic revival even as much of the rest of the world locked down to fight the coronavirus.

For the quarter, gold has gained 6%, and 1.7% this month, on the back of U.S.-Iran tensions in January and since then the global pandemic.

Countries and global central banks have announced several policy measures to combat the economic toll from the coronavirus, which has infected over 777,000 people worldwide and killed 37,561. Russia’s central bank announced it would suspend buying gold starting April 1.

Elsewhere, platinum rose 1.5% to $733.69, but was on track to post its biggest quarterly decline since 2008 and worst month since 2015.

“Platinum demand from the automotive industry has been largely paralysed by the corona crisis,” Commerzbank analysts said in a note. “The production outages in South Africa will be unable to offset the negative effects on demand, assuming that production– as announced so far – remains restricted for only three weeks.”

The world’s largest platinum producers Anglo American Platinum, Sibanye-Stillwater and Impala Platinum have declared force majeure on contracts after a three-week national lockdown in South Africa forced operations to close.

Palladium rose 3.2% to $2,402.17 an ounce. The auto-catalyst metal was headed for its biggest quarterly gain since 2010, but was set for its first monthly decline in eight.

Silver rose 0.1% to $14.13, but was set to post its biggest quarterly decline since June 2013.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,674.91.

The projected lower bound is: 1,532.68.

The projected closing price is: 1,603.80.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 72.3353. This is not an overbought or oversold reading. The last signal was a sell 0 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 52.59. 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 buy 7 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 57. This is not a topping or bottoming area. The last signal was a buy 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 buy 4 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -19.037 at 1,602.892. Volume was 8,900% above average (trending) and Bollinger Bands were 165% wider than normal.

Open     High      Low     Close     Volume___
1,611.9901,623.2671,583.0481,602.892 64,765
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,570.11 1,590.13 1,510.85
Volatility: 38 29 19
Volume: 6,477 1,295 324

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 6.1% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume out of XAU= (bearish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 11 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

Latest posts by HEFFX Australia (see all)