Gold futures prices are higher in early U.S. trading Thursday. Once again, the two metals are choosing to behave like a commodity market and are following the overnight gains in global equities markets, led by the U.S. It appears gold and silver traders reckon rallying stock markets suggest better overall demand for commodities. December gold futures were last up $13.40 at $1,904.10 and December Comex silver was last up $0.384 at $24.27 an ounce.
Global stock markets were mixed but mostly firmer overnight. U.S. stock indexes are set to open the New York day session higher, on follow-through strength from Wednesday’s solid gains.
Traders and investors are still monitoring U.S. congressional discussions on a stimulus package for American citizens and businesses, although a breakthrough deal does not appear to be close at hand. Still, the U.S. stock indexes rallied Wednesday and overnight on notions that some kind of a deal will be reached soon. Gold and silver bulls may also be thinking that more U.S. stimulus money sent out by the government means higher odds for problematic inflation down the road.
The weekly jobless claims report is the U.S. data point of the day Thursday, with new claims seen at 825,000, down a bit from the 837,000 reported last week.
The important outside markets early today see the U.S. dollar index near steady. Nymex crude oil prices are higher and trading around $40.50 a barrel. The 10-year U.S. Treasury note yield is presently trading around 0.77%.
U.S. economic data due for release Thursday includes the weekly jobless claims report and the monthly chain store sales index. Several Federal Reserve officials are also slated to give speeches today.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,988.23.
The projected lower bound is: 1,826.68.
The projected closing price is: 1,907.45.
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 27 white candles and 23 black candles for a net of 4 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 49.3263. This is not an overbought or oversold reading. The last signal was a sell 3 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 50.02. 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 43 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 86. This is not a topping or bottoming area. The last signal was a buy 8 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 buy 4 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 15.679 at 1,908.770. Volume was 8,900% above average (trending) and Bollinger Bands were 11% narrower than normal.
Open High Low Close Volume 1,893.590 1,909.410 1,892.520 1,908.770 11,244
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,894.68 1,939.03 1,744.44 Volatility: 17 26 23 Volume: 1,124 225 56
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 9.4% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect very strong flows of volume into XAU= (bullish).
Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 33 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.