Gold prices remain in striking distance of $1,900 an ounce even as confidence among U.S. consumers rose more than expected in September.
Tuesday, the U.S. Conference Board said that its consumer confidence index rose to 101.8 in September, up from August’s revised reading of 86.3. The data was better than expected as consensus forecasts called for a reading of around 90.
Gold prices have been pushing modestly higher since the start of the week due to some selling pressure in the U.S. dollar. The latest economic data is not having much impact on the precious metal in initial reaction. December gold futures last traded at $1,893.90 an ounce, up 0.62% on the day.
The report noted improvement in both the present outlook and expectations. The present situation index rose to 98.5, up from August’s reading 84.2. At the same time the expectations index rose to 104, up from the previous reading of 85.2.
Adam Button, chief currency strategist at Forexlive.com said that although the latest confidence data is better than expected. There is a long ways to go before it gets back to pre-COVID-19 levels.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,975.18.
The projected lower bound is: 1,812.45.
The projected closing price is: 1,893.82.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
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 71.3155. This is not an overbought or oversold reading. The last signal was a buy 2 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 43.87. 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 36 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 -37. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 8 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -4.306 at 1,893.384. Volume was 8,900% above average (trending) and Bollinger Bands were 3% narrower than normal.
Open High Low Close Volume 1,896.8101,899.1251,892.2001,893.384 13,873
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,896.77 1,945.40 1,731.32 Volatility: 19 26 23 Volume: 1,387 277 69
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 9.4% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect very strong flows of volume into XAU= (bullish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 26 periods.