Gold 1 OZ (XAU=X) one of the safe havens during this pandemic and beyond

Gold 1 OZ (XAU=X) one of the safe havens during this pandemic and beyond

Gold 1 OZ (XAU=X) one of the safe havens during this pandemic and beyond

Gold markets have been relatively quiet during the trading session on Wednesday after peeking through the $1700 level on Tuesday. By given back gains the way the market has, it ended up forming the shooting star during the Tuesday session which in and of itself is a negative sign. Having said that, the market looks very likely to pull back just a bit, but I think this will offer value for those looking to find the safety of gold. Furthermore, the central banks around the world continue to loosen monetary policy, so that of course will drive up demand for gold eventually.

Structurally speaking, the 50 day EMA which is currently trading at the $1600 level should be supported, so I would be surprised to see this market pullback through there. If it does, then obviously it would be a very negative sign. I don’t think that happens though, and I think that any move towards that level will probably attract quite a bit of attention. The alternate scenario is to break above the top of the shooting star from the Tuesday session, leading to an explosion in gains. At that point I would be aiming for $1800, with a longer-term target of $2000 out into the future.

With the “printing” of money, it’s almost impossible to imagine the gold will go down over the longer term. This doesn’t mean that there will be the occasional problem, but in the end, I do believe that gold will be thought of as one of the safe havens during this pandemic and beyond.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,725.80.

The projected lower bound is: 1,572.15.

The projected closing price is: 1,648.98.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 74.0485. 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 57.99. 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 14 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 94. This is not a topping or bottoming area. The last signal was a sell 1 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 11 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 1.738 at 1,647.508. Volume was 8,900% above average (trending) and Bollinger Bands were 110% wider than normal.

Open     High      Low     Close     Volume___
1,644.0221,647.9941,642.0881,647.508 7,129
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,623.34 1,598.15 1,518.49
Volatility: 29 31 20
Volume: 713 143 36

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 8.5% above its 200-period moving average and is in an upward 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 bullish on XAU= and have had this outlook for the last 3 periods.

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