Gold 1 OZ (XAU=X) prices on track for the lowest settlement since Oct. 22
The price of gold plunged on Tuesday, wiping out more than a week’s worth of progress as keener appetite for risk assets undermined precious metals. Meanwhile, the U.S. services sector rose more than expected in October, allaying fears of recession for the world’s largest economy.
Gold Price Plunges; Silver Follows
Futures on December gold delivery, the most actively-traded derivatives contract, plunged $23.30, or 1.5%, to $1,487.80 a troy ounce on the Comex division of the New York Mercantile Exchange. The yellow metal is on track for the lowest settlement since Oct. 22.
Silver futures also ripped lower, with the December contract falling 34 cents, or 1.9%, to $17.73 a troy ounce.
The gold-silver ratio that is used by investors to determine when to buy precious metals rose 0.6% to 84.02. That’s how many ounces of silver are needed to purchase one ounce of gold.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,472.98.
The projected upper bound is: 1,517.44.
The projected lower bound is: 1,446.49.
The projected closing price is: 1,481.97.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
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 61.7519. This is not an overbought or oversold reading. The last signal was a sell 0 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 43.79. 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 49 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 -46. This is not a topping or bottoming area. The last signal was a sell 0 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 8 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -26.084 at 1,483.153. Volume was 8,900% above average (trending) and Bollinger Bands were 51% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,499.36 1,502.70 1,387.85
Volatility: 15 15 15
Volume: 7,036 1,407 352
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 6.9% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect very strong flows of volume out of XAU= (bearish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 7 periods.