Gold 1 OZ (XAU=X) Target $3000
Gold hitting $3,000 isn’t just a belief, it’s a “monetary science”, and will happen sooner or later said Dan Oliver, founder of Myrmikan Capital.
Oliver said that the Federal Reserve has printed enough money to cause over-capacity in our economy and create a bubble that’s ready to burst.
“When the bubble is happening people don’t need gold. You don’t need gold when the market is going up, when all your investments are paying off. You need it when the opposite happens, and so gold always does badly during a bubble…gold does not protect you in a credit inflation, it protects you in the crash,” Oliver told Kitco News on the sidelines of the 121 Mining Investment Conference.
His comments come as gold rose the wave of assets rallying in the last week, with the bullion up 4% since last Thursday and the VanEck Vectors Gold Miners ETF (GDX) up more than 10%.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1,297.37.
The projected upper bound is: 1,355.68.
The projected lower bound is: 1,312.50.
The projected closing price is: 1,334.09.
A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.
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 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 84.2143. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 74.76. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 74 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 133.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 5 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 3.830 at 1,333.610. Volume was 8,900% above average (trending) and Bollinger Bands were 64% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,303.45 1,288.52 1,263.17
Volatility: 11 11 11
Volume: 2,072 414 104
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 5.6% 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 17 periods. Our momentum oscillator is currently indicating that XAU= is currently in an overbought condition.