Gold 1 OZ (XAU=X) prices up on risk aversion amid the Brexit saga playing out
Gold prices are moderately higher in early U.S. trading Wednesday, on a bit of risk aversion amid the Brexit saga playing out. December gold futures were last up $8.70 an ounce at 1,496.30. December Comex silver prices were last up $0.085 at $17.585 an ounce.
Asian and European stock indexes were mixed but mostly weaker overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Caterpillar reported a big earnings miss to the downside this morning, which is pressuring U.S. stock indexes.
The Brexit uncertainty is still weighing on European equities and even some global stock markets, to a lesser degree. The British Parliament is wrangling with U.K. Prime Minister Boris Johnson on the timing of the U.K. leaving the European Union. Johnson wants a resolution to the matter and a Brexit sooner. Parliament is divided on the topic. Right now, October 31 is the official Brexit date.
Technically, the gold bulls have the overall near-term technical advantage. A six-week-old downtrend line is still in place on the daily bar chart. The recent “collapse in volatility” of prices the past three sessions suggests a bigger price move is on the horizon.
Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,500.00 and then at last week’s high of $1,503.00. First support is seen at $1,490.00 and then at last week’s low of $1,478.00.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,527.75.
The projected lower bound is: 1,454.98.
The projected closing price is: 1,491.37.
A white body occurred (because prices closed higher than they opened).
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 51.4178. This is not an overbought or oversold reading. The last signal was a buy 15 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 48.58. 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 40 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 -15. This is not a topping or bottoming area. The last signal was a buy 15 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 up 4.200 at 1,491.850. Volume was 8,900% above average (trending) and Bollinger Bands were 58% 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: 1,489.16 1,505.34 1,378.34
Volatility: 8 15 14
Volume: 7,353 1,471 368
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 8.2% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 30 periods.