Gold 1 OZ (XAU=X) steady amid delay in trade deal

Gold 1 OZ (XAU=X) steady amid delay in trade deal

Gold 1 OZ (XAU=X) steady amid delay in trade deal

Gold remained flat with a negative bias on domestic futures on October 30 due to a possible delay in the US-China trade pact.

Meanwhile, investors across the globe also wait for the decision of the US Federal Reserve’s on interest rates later in the day.

The Fed is scheduled to meet on October 29-30. “Investors expect the US Federal Reserve to cut interest rates by 0.25 percentage point for the third time this year later in the day, with Federal fund futures implying that traders see a 94 percent chance for a 25 basis point rate cut,” said a Reuters report.

Gold December futures were trading flat with a positive bias at Rs 37,957 per 10 gram at 0910 hrs IST. It closed 0.02 percent lower at Rs 37,916 on October 30.

Gold and Silver prices traded on a weaker note on September 29. Spot Gold in the international market tested $1,485 and silver test $ 17.70 per troy ounce. In the domestic market, gold prices tested 37,800 and silver prices tested Rs 45,556.

After downbeat US consumer confidence data both the precious metals get support at lower levels. Weaker data raise hope for further rate cut by the US Federal Reserve.

“Possibility of a faster trade deal between US-china, delaying Brexit eased safe-haven buying in precious metals. We expect both the precious metals remain volatile ahead of Fed meeting outcome and gold could face stiff resistance around 38,050-38,100,” Manoj Kumar Jain, Director at IndiaNivesh Commodities, told Moneycontrol.“Silver face resistance around 46,350 levels. Gold prices could test 37,800 and silver could test 45,700 levels again,” he said.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,524.06.

The projected lower bound is: 1,452.99.

The projected closing price is: 1,488.53.

Candlesticks

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 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 20.0446. This is not an overbought or oversold reading. The last signal was a buy 20 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 46.82. 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 45 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 -38. This is not a topping or bottoming area. The last signal was a sell 2 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 4 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 1.390 at 1,488.790. Volume was 8,900% above average (trending) and Bollinger Bands were 64% narrower than normal.

Open     High      Low     Close     Volume___
1,487.4001,490.2001,486.7371,488.790 37,366
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,492.13 1,504.05 1,383.57
Volatility: 8 15 14
Volume: 3,737 747 187

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 7.6% above its 200-period moving average and is in an upward 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 bullish on XAU= and have had this outlook for the last 3 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.

You must be logged in to post comments :  
CONNECT WITH