$XAU #Gold #Commodities #Trading #FX #Markets
Gold
Ticker: XAU=
Price: $1955.91
News
Gold headed for back-to-back gains following wild swings as investors weighed the outlook for the metal’s record-setting rally – by tracking moves in bond yields, a weaker dollar, as well as an uptick in risk appetite.
Spot bullion climbed, while futures were little changed. This comes after prices tumbled on Tuesday, then swung in a wide arc on Wednesday, as last-week’s rally likely spurred some technical selling and profit-taking. Meanwhile, most Asian stocks advanced Thursday and were on course to erase this year’s declines as the global equity rally that’s driven shares higher since March continued to strengthen.
“Gold’s roller-coaster ride is far from over as bond yields will likely remain volatile for the rest of the summer,” said Shayne Heffernan, CEO and Founder of HEFFX. “The relentless pace higher for gold will moderate, but the outlook still warrants a strong stretch of fresh, record highs.”
Meanwhile, investors were also weighing comments by two senior Federal Reserve officials who lamented the USÂ failure to control the coronavirus pandemic, which stood in poor comparison with efforts in other advanced countries and was undermining the nation’s economic recovery.
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 1,884.12.
The projected upper bound is: 2,027.59.
The projected lower bound is: 1,894.90.
The projected closing price is: 1,961.25.
Candlesticks
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 35 white candles and 15 black candles for a net of 20 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 39.0478. This is not an overbought or oversold reading. The last signal was a sell 4 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 56.20. 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 3 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 -47. This is not a topping or bottoming area. The last signal was a buy 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 sell 3 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 2.800 at 1,955.834. Volume was 8,900% above average (trending) and Bollinger Bands were 98% wider than normal.
Open High Low Close Volume 1,953.450 1,962.090 1,946.38 11,955.834 6,892
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,989.72 1,839.35 1,654.96 Volatility: 41 22 22 Volume: 689 138 34
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 18.2% 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 into XAU= (bullish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 43 periods.
