Gold 1 OZ (XAU=X) prices remain under pressure as producer inflation pressures rise in line with expectations
Gold prices remain under pressure as producer inflation pressures rise in line with expectations.
Tuesday the U.S. Labor Department said its Producer Price Index (PPI) rose 0.1% in May, following April’s increase of 0.2%; the data were in line with consensus forecasts. For the year wholesale inflation rose 1.8%, the report said.
At the same time core PPI, which strips out volatile food and energy costs, rose 0.2% last month, following April’s increase of 0.1%. Core inflation rose 2.3% for the year, the report said.
The gold market is seeing little reaction to the economic data as investor sentiment improves because of a further easing of global trade tensions. August gold futures last traded at $1,325 an ounce, down 0.32% on the day.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1,302.82.
The projected upper bound is: 1,348.26.
The projected lower bound is: 1,306.91.
The projected closing price is: 1,327.59.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 50.0905. This is not an overbought or oversold reading. The last signal was a sell 1 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 65.14. 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 1 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 55. This is not a topping or bottoming area. The last signal was a sell 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 buy 8 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -0.932 at 1,326.798. Volume was 8,900% above average (trending) and Bollinger Bands were 96% wider 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: 1,318.20 1,291.05 1,265.12
Volatility: 13 10 11
Volume: 2,058 412 103
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 4.9% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 20 periods.