Gold 1 OZ (XAU=X) trader and investor risk appetite remains upbeat

Gold 1 OZ (XAU=X) trader and investor risk appetite remains upbeat

Gold 1 OZ (XAU=X) trader and investor risk appetite remains upbeat

Gold and silver prices are modestly up in early U.S. trading Monday, despite rallying world stock markets that saw the U.S. indexes score new record highs overnight. December gold futures were last up $2.20 an ounce at 1,513.60. December Comex silver prices were last up $0.113 at $18.16 an ounce.

Underlying bullish elements at work in favor of the gold and silver market bulls are Nymex crude oil prices hitting a six-week high overnight, a still-wobbly U.S. dollar index and chart postures that remain overall bullish for both precious metals. Nymex crude oil prices firmer in early U.S. trading today and trading around $56.80 a barrel. Meantime, the U.S. dollar index is slightly up. 

Asian and European stock indexes were mostly up in trading overnight. U.S. stock indexes are pointed toward higher openings and new all-time highs when the New York day session begins.

Trader and investor risk appetite remains upbeat at present, amid no major geopolitical hotspots that are flaring up to rattle the world marketplace. Adding to upbeat attitudes are the latest reports on the U.S.-China trade front that say a partial deal is close to being signed.

China is set to launch new cryptocurrency backed by gold, reports over the weekend said. Said one analyst: It may take some time for the investing public to trust China’s backing of the new gold cryptocurrency.

Technically, the gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,543.30. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,520.90 and then at $1,525.00. First support is seen at Friday’s low of $1,505.40 and then at $1,500.00.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,541.00.

The projected lower bound is: 1,471.69.

The projected closing price is: 1,506.34.

Candlesticks

A black body occurred (because prices closed lower 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 25 white candles and 25 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 85.7817. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 23 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 54.26. 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 48 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 109.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 7 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -6.820 at 1,506.730. Volume was 8,900% above average (trending) and Bollinger Bands were 53% narrower than normal.

Open     High      Low     Close     Volume___
1,513.4001,514.5361,504.0701,506.730 69,309
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,499.56 1,503.84 1,386.94
Volatility: 11 15 14
Volume: 6,931 1,386 347

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 8.6% 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 out of XAU= (bearish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 6 periods.

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