Gold 1 OZ (XAU=X) positioned for further declines

Gold 1 OZ (XAU=X) positioned for further declines

Gold 1 OZ (XAU=X) positioned for further declines

The precious metal suffered its biggest daily loss in almost three years on last Thursday, shedding over $40 thanks to the risk-on mood and positive data from the United States. While Gold is positioned for further punishment in the near term, the downside will be capped by global growth concerns and low interest rates across the globe. Where the metal concludes last week and performs in the week ahead will be influenced by the US jobs report scheduled for release on Friday afternoon. A strong US jobs report should cool US rate cut expectations consequently strengthening the Dollar, leading to weaker Gold prices.

Focusing on the technical picture, Gold is under pressure on the daily charts. Sustained weakness below $1525 should encourage a decline towards $1500 in the near term.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,553.45.

The projected lower bound is: 1,463.86.

The projected closing price is: 1,508.65.

Candlesticks

A black body occurred (because prices closed lower 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 23 white candles and 27 black candles for a net of 4 black 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 34.7780. This is not an overbought or oversold reading. The last signal was a sell 18 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 51.02. 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 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 -62. 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 sell 6 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -12.400 at 1,506.700. Volume was -0% below average (neutral) and Bollinger Bands were 24% narrower than normal.

Open     High      Low     Close     Volume___
1,519.0001,527.4481,502.5001,506.700 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,530.96 1,465.56 1,339.60
Volatility: 18 20 14
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 12.5% 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 into XAU= (bullish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 26 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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