Gold 1 OZ (XAU=X) prices glitter after Powell comments

Gold bulls posed another topside push yesterday on the heels of some dovish comments from FOMC Chair, Jerome Powell. This helped Gold prices to push back above the 1400 marker after a two-week pullback from the fresh six-year-highs that were set in late-June.

Yesterday’s risk rally was fairly wide-spread, with global stocks catching a bid as the S&P 500 set a fresh all-time-high above the psychological 3k level. Noticeably, however, that bullish theme in Gold prices was a bit more subdued as buyers pulled back short of last week’s swing-high, showing resistance in a key zone on the chart that’s thus far been able to restrain the advance. This indicates that more digestion of the late-Q2 breakout may be in order before buyers are ready for fresh highs in the yellow metal.

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 1,353.40.

The projected upper bound is: 1,442.20.

The projected lower bound is: 1,377.47.

The projected closing price is: 1,409.84.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 51.2252. This is not an overbought or oversold reading. The last signal was a sell 10 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 60.40. 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 5 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 31. This is not a topping or bottoming area. The last signal was a sell 10 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 5 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -11.700 at 1,407.100. Volume was 8,900% above average (trending) and Bollinger Bands were 61% wider than normal.

Open High Low Close Volume___
1,419.0001,426.0001,402.9201,407.100 29,737

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period

Close:          1,406.35       1,337.20       1,286.27

Volatility:           22             15             12

Volume:            2,974            595            149

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 9.4% 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 42 periods.

  GOLD 1 OZ, gold price, shayne heffernan, trading, xau price, XAU=X

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