Gold 1 OZ (XAU=X) price today rockets to lifetime high on Coronavirus fears; experts still bullish

Gold 1 OZ (XAU=X) price today rockets to lifetime high on Coronavirus fears; experts still bullish

Gold 1 OZ (XAU=X) price today rockets to lifetime high on Coronavirus fears; experts still bullish

Gold price today climbed its lifetime high of as much as Rs 43,912 per 10 gms on Coronavirus pandemic spread over 75 countries. The commodity market experts have said that the precious yellow metal will further go upward as the COMEX gold is poised to hit $1,800 per ounce. They are of the opinion that the COVID-19 virus is expected to have its impact on the global markets for at least the next three months and in this period the gold price will climb up to $1,800 per ounce. In MCX terms, the gold price is expected to touch Rs 47,000 per 10 gms, they said.

Expecting further rally in gold price due to the Coronavirus fears, Amit Sajeja, Research Analyst at Motilal Oswal said, “Coronavirus impact on the global economy is definitely going to stay for the next three months and if some more new cases of COVID-19 is detected in the US, there can be some sharp rally at the COMEX gold fuelling it to around $1,800 per ounce.” 

Expecting high volatility in the gold price at both COMEX and MCX, Sugandha Sachdeva, Vice President at Religare Commodities said, “Gold price has immediate support at $1,620 per ounce, while major support is seen at $1,590. On the higher side, gold prices have a visible hurdle at $1,660 per ounce level. Once it breaks past this resistance and sustains above this level, we can expect the gold price at COMEX to test higher levels of $1,730 per ounce.”

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1,569.18.

The projected upper bound is: 1,707.04.

The projected lower bound is: 1,615.53.

The projected closing price is: 1,661.29.

Candlesticks

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 32 white candles and 18 black candles for a net of 14 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 82.9672. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 63.79. 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 83. This is not a topping or bottoming area. The last signal was a sell 6 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 3 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 22.896 at 1,658.344. Volume was 8,900% above average (trending) and Bollinger Bands were 91% wider than normal.

Open     High      Low     Close     Volume___
1,635.5271,661.8001,634.6151,658.344 59,127
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,632.88 1,576.71 1,489.88
Volatility: 33 18 16
Volume: 5,913 1,183 296

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 11.3% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 11 periods.

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