Gold 1 OZ (XAU=X) pulled back from a more than six-month peak

Gold 1 OZ (XAU=X) pulled back from a more than six-month peak

Gold 1 OZ (XAU=X) pulled back from a more than six-month peak

Gold has pulled back from a more than six-month peak, as robust US jobs data eased some concerns about an ailing economy, while palladium prices punched through the key $US1,300 level for the first time.

Spot gold slipped 0.8 per cent to $US1,283.86 per ounce on Friday, after dropping to $US1,276.40.

The metal was however on track for a third straight weekly gain, touching its highest level since mid-June at $US1,298.42 earlier on Friday.

US gold futures settled down 0.7 per cent at $US1,285.80 per ounce, having briefly surpassed the psychological $US1,300 per ounce level earlier in the session.

Gold is highly sensitive to rising interest rates, as these increase the opportunity cost of holding non-yielding bullion.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1,249.10.

The projected upper bound is: 1,308.45.

The projected lower bound is: 1,268.82.

The projected closing price is: 1,288.64.

Candlesticks

A white body occurred (because prices closed higher 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 25 white candles and 25 black 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 60.4274. 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 69.64. 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 85. This is not a topping or bottoming area. The last signal was a sell 1 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 24 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 2.720 at 1,287.550. Volume was 8,900% above average (trending) and Bollinger Bands were 81% wider than normal.

Open High Low Close Volume___
1,285.7401,295.1001,282.2501,287.550 16,539

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

Moving Averages: 10-period 50-period 200-period
Close: 1,280.68 1,239.67 1,249.47
Volatility: 9 10 11
Volume: 1,654 331 83

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 3.0% above its 200-period moving average and is in an upward 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 bullish on XAU= and have had this outlook for the last 21 periods.

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