Gold 1 OZ (XAU=X) Prices Rally Ahead of US Holiday Weekend on Virus Fears
Gold prices moved higher on Friday as concerns over the coronavirus cases, and how it might erode global growth helped increase the risk premium in the capital markets. Gold which is considered a safe haven asset moved higher. Bonds rallied weighing in US yields which capped the upside in the US dollar. US retail sales came out in line with expectations, but December sales were revised slightly lower.
Gold prices moved higher pushing toward resistance near the February highs at 1,592. Additional resistance is seen near the January highs at 1,611. Shor term support is seen near the 10-day moving average at 1,568. Target support is seen near the 50-day moving average at 1,535.
Short term momentum has turned positive as the fast stochastic generated a crossover buy signal and accelerated higher. The movement is choppy which likely means that gold is going to consolidate. The RSI turned higher and is forming a continuation pattern which points to accelerating positive momentum. The MACD histogram is printing in the red with a rising trajectory which also points to consolidation and sideways price action.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,613.56.
The projected lower bound is: 1,560.07.
The projected closing price is: 1,586.82.
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 33 white candles and 16 black candles for a net of 17 white 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 79.2489. This is not an overbought or oversold reading. The last signal was a sell 13 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 61.69. 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 13 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 104.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 9 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 8.225 at 1,584.320. Volume was -0% below average (neutral) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,568.62 1,536.35 1,466.07
Volatility: 13 11 15
Volume: 0 0 0
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 8.1% 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 into XAU= (bullish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 4 periods.