Gold 1 OZ (XAU=X) Prices Expected to Edge Up

Gold 1 OZ (XAU=X) Prices Expected to Edge Up

Gold 1 OZ (XAU=X) Prices Expected to Edge Up

Gold prices edged up on Monday as the U.S dollar hovered near a two-week low touched in the previous session, while coronavirus lockdowns tightened across the world and stoked fears of economic damage, lifting demand for safe-haven bullion

Spot gold was up 0.3% at $1,621.85 per ounce, as of 0029 GMT. U.S. gold futures rose 1% to $1,641.80.

The dollar was holding close to its lowest since March 17, touched on Friday, making gold cheaper for investors holding other currencies. 

Physical gold dealers struggled to meet surging safe-haven demand last week, especially in Singapore, as the outbreak choked global supply chains, while massive discounts were offered in India amidst a lockdown. 

The coronavirus pandemic has already driven the global economy into recession and countries must respond with “very massive” spending to avoid a cascade of bankruptcies and emerging market debt defaults, the head of the International Monetary Fund warned on Friday. 

The U.S. House of Representatives on Friday approved a $2.2 trillion aid package — the largest in history — to help cope with the virus-inflicted economic downturn, while U.S. consumer sentiment dropped to near a 3-1/2-year low in March.

U.S. deaths from coronavirus could reach 200,000 with millions of cases, the government’s top infectious diseases expert warned on Sunday as New York, New Orleans and other major cities pleaded for more medical supplies.

European Central Bank chief urged wrangling EU leaders to act more decisively to cushion the economic hit of the pandemic, three sources familiar with the matter said on Friday.

The number of deaths in Italy fell for the second consecutive day on Sunday but the country still looked almost certain to see an extension of stringent virus containment measures. 

A growing number of imported virus cases in China risked fanning a second wave of infections when domestic transmissions had “basically been stopped”, a senior health official said on Sunday.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,688.27.

The projected lower bound is: 1,547.02.

The projected closing price is: 1,617.64.

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 28 white candles and 22 black candles for a net of 6 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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 85.0744. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 55.30. 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 6 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 71. This is not a topping or bottoming area. The last signal was a buy 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -0.963 at 1,616.537. Volume was 8,900% above average (trending) and Bollinger Bands were 174% wider than normal.

Open     High      Low     Close     Volume___
1,616.0001,634.2141,607.3061,616.537 12,449
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,562.11 1,589.12 1,509.92
Volatility: 37 28 19
Volume: 1,245 249 62

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 7.1% 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 10 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)