The Gold price is trading under pressure at the moment, as traders are taking profits near year end. The Gold price today continues to take a hit as US Q2 GDP came in stronger than expected although existing home sales fell 2.5% month-to-month and 22% from an year ago.
U.S. consumer confidence came in weaker than anticipated and the spread of the coronavirus is making a case for further stimulus, which would continue to support the Gold price in January 2021.
Looking at the gold chart, Gold December hit a six-week high around 1,906 on Monday as US Congress approved a $892 billion coronavirus aid package but then it fell down to 1855 that same day. But the Gold Price in January could provide some surprises, even if the stimulus has a quick effect.
On the technical side, our forward Gold price analysis for January shows a sustained break above the 20-day moving average on the hourly chart could encourage bulls to run for November highs.
The momentum for Gold price analysis in January 2021 seems positive to neutral as the MACD points to consolidation.
The strain a new coronavirus mutation is having on the UK has caused several countries around the world to shut their borders to Britain which might give some support to Gold in January amid booming pandemic uncertainties.
However, gold prices are prone to profit-taking into the end of the year given the prices are up over 20% this year so the risk continues to linger for short-term traders.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,947.82.
The projected lower bound is: 1,823.22.
The projected closing price is: 1,885.52.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
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 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 51.6177. This is not an overbought or oversold reading. The last signal was a sell 5 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 57.43. 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 19 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 93. This is not a topping or bottoming area. The last signal was a sell 4 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 16 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 10.065 at 1,885.890. Volume was 8,900% above average (trending) and Bollinger Bands were 22% narrower than normal.
Open High Low Close Volume 1,884.676 1,888.910 1,883.594 1,885.890 2,081
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,873.03 1,867.41 1,826.02 Volatility: 13 21 22 Volume: 208 42 10
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= gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
PREC.M.XAU= is currently 3.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 8 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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