Gold 1 OZ (XAU=X) prices rise as the euro zone exacerbates fears of a global slowdown

Gold 1 OZ (XAU=X) prices rise as the euro zone exacerbates fears of a global slowdown

Gold 1 OZ (XAU=X) prices rise as the euro zone exacerbates fears of a global slowdown

Gold prices are up as weak economic data from the euro zone exacerbates fears of a global slowdown, weighing on risk sentiment and putting bullion on track for its best week in nearly two months.

Spot gold climbed about 0.3 per cent at $US1,313.07 per ounceon Friday while US gold futures settled 0.4 per cent higher at $US1,312.3.

The metal was up nearly one per cent for the week, on track to mark its biggest weekly percentage gain since beginning of February.

Earlier this week, the Fed brought its three-year drive to tighten monetary policy to an abrupt end, abandoning projections for any interest rate hikes this year.

Lower interest rates reduce the opportunity cost of holding non-yielding gold and weigh on the dollar.

Gold prices rose to their highest since February 28 on Thursday at $US1,320.22.

Despite paring some of those gains, they were still on track for a third straight weekly gain, up about one per cent so far.

Among other precious metals, spot palladium fell three per cent to $US1,560.51 per ounce, after touching an all-time high of $US1,620.53 in the previous session.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,344.81.

The projected lower bound is: 1,299.74.

The projected closing price is: 1,322.27.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white 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 72.4058. This is not an overbought or oversold reading. The last signal was a sell 7 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 59.98. 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 22 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 149.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 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 buy 6 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 8.544 at 1,321.674. Volume was 8,900% above average (trending) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
1,312.9501,324.3291,310.7001,321.674 19,490

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,307.39 1,306.46 1,247.13
Volatility: 9 11 11
Volume: 1,949 390 97

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 6.0% 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 15 periods.

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