Gold 1 OZ (XAU=X) slight retreat in the US dollar

Gold 1 OZ (XAU=X) slight retreat in the US dollar

Gold 1 OZ (XAU=X) slight retreat in the US dollar

Gold prices edged higher overnight, buoyed by a slight retreat in the US dollar amid optimism about a potential resolution of the US-China trade conflict.

Spot gold was up 0.2 per cent at $US1,310.95 an ounce, having declined 0.4 per cent in the previous session.

US gold futures settled 0.2 per cent higher at $US1,314.00.

Investors will also be watching for further clarity on the Fed’s monetary policy going forward, analysts said.

Spot gold rose to its highest since late April at $US1,326.30 in January, after the Fed kept interest rates steady and said it would be patient on further hikes amid a cloudy outlook for the US economy due to global growth concerns.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1,275.47.

The projected upper bound is: 1,327.85.

The projected lower bound is: 1,289.23.

The projected closing price is: 1,308.54.

Candlesticks

A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with PREC.M.XAU=). It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 44.1542. 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 56.56. 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 7 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 -0. This is not a topping or bottoming area. The last signal was a sell 7 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 sell 4 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -3.350 at 1,307.160. Volume was 8,900% above average (trending) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
1,310.7901,318.1201,306.6601,307.160 15,114

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

Moving Averages: 10-period 50-period 200-period
Close: 1,312.12 1,281.64 1,245.46
Volatility: 7 10 11
Volume: 1,511 302 76

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 5.0% 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 48 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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