Gold 1 OZ (XAU=X) slides from near 7-year peak as U.S.-Iran fears subside

Gold 1 OZ (XAU=X) slides from near 7-year peak as U.S.-Iran fears subside

Gold 1 OZ (XAU=X) slides from near 7-year peak as U.S.-Iran fears subside

Gold prices slid on Thursday, retreating further from a near 7-year peak scaled in the previous session as tensions between the U.S. and Iran eased following conflict over the U.S. killing of an Iranian general.Spot gold fell 0.5% to $1,547.72 per ounce at 1050

GMT, having earlier slipped to $1,539.78 an ounce. U.S. goldfutures 0.7% to $1,548.60 per ounce.

Gold had risen as much as 2.4% early on Wednesday to break above the key $1,600 level after Iran’s retaliatory attacks on military bases housing U.S. troops in Iraq. U.S. President Donald Trump responded to the missile attacks with sanctions rather than military action, while Iranian officials said the missile attack concluded their response, easing fears of wider conflict in the Middle East and promptinga sell-off in safe haven assets like gold. .

“Since Iran and U.S. will not escalate the recent issue out of proportion, we are seeing a little retracement after gold broke a key technical level of $1,550,” said Bernard Sin, group head of trading at MKS. Holdings of the world’s largest gold-backed exchange-tradedfund SPDR Gold Trust dropped 1.05% to 886.81 tonnes on

Wednesday. “While it still seemed yesterday morning that gold could climb further on the back of the escalating situation in the Middle East, the price correction is likely to continue in the event of a de-escalation,” Commerzbank analysts wrote in a note.Further weighing on gold, the dollar index was

hovering close to a two-week high, making bullion costly for holders of other currencies. “The dollar has been on the positive side for the last 2-3 days and if it rises further, definitely we can see more correction in gold prices,” said Hareesh V, head of commodity research at Geojit Financial Services. Markets are now eyeing key U.S. economic data such as the non-farm payrolls and unemployment data on Friday. Among other precious metals, palladium hit a record peak of $2,149.50 an ounce on sustained supply concerns, and was last down 0.3% to $2,097.81 per ounce.

Technical Indicators

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 1,508.62.

The projected upper bound is: 1,578.87.

The projected lower bound is: 1,524.83.

The projected closing price is: 1,551.85.

Candlesticks

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 29 white candles and 20 black candles for a net of 9 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 49.0716. 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 69.27. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 65. This is not a topping or bottoming area. The last signal was a sell 0 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 29 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -4.620 at 1,551.090. Volume was 8,900% above average (trending) and Bollinger Bands were 121% wider than normal.

Open     High      Low     Close     Volume___
1,555.7251,561.2301,539.7801,551.090 88,093
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,538.62 1,486.57 1,429.41
Volatility: 13 11 14
Volume: 8,809 1,762 440

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 8.5% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 18 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.