GOLD 1 OZ (XAU=X) remains on the defensive
Gold prices remain on the defensive and below critical technical levels as wholesale inflation rises in line with expectations.
Wednesday, the U.S. Labor Department said its Producer Price Index (PPI) rose 0.2% in September following a drop of 0.1% in August. The data was in line with expectations. This is the first rise in headline inflation pressures in three months. For the year, producer inflation increased 2.6%.
Core PPI, which strips out volatile food and energy costs, rose 0.2% in the last month, following a 0.1% drop in August. Economists were also expecting to see an increase of 0.2%. Annually, prices for final demand less foods, energy, and trade services increased 2.9%.
U.S. economic data is having little impact on gold prices as the market continues to be dominated by the U.S. dollar. The yellow metal is seeing little reaction to the latest inflation data as prices remain below the critical technical level at $1,200 an ounce. December gold last traded at $1,189.60 an ounce, down 0.14% on the day.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 1,217.31.
The projected lower bound is: 1,170.56.
The projected closing price is: 1,193.94.
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 27 white candles and 23 black candles for a net of 4 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 29.5357. This is not an overbought or oversold reading. The last signal was a sell 34 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 48.22. 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 buy 38 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 -50. This is not a topping or bottoming area. The last signal was a buy 0 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 4 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 5.190 at 1,194.360. Volume was 8,900% above average (trending) and Bollinger Bands were 42% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,193.43 1,197.86 1,278.29
Volatility: 14 12 12
Volume: 1,768 354 88
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 6.6% below 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 1 periods.