Gold 1 OZ (XAU=X) traders are looking to the U.S. stock market for direction

Gold 1 OZ (XAU=X) traders are looking to the U.S. stock market for direction

Gold 1 OZ (XAU=X) traders are looking to the U.S. stock market for direction

Gold and silver prices are trading not far from unchanged in early U.S. trading Thursday. The precious metals traders are looking to the U.S. stock market for direction. More selling pressure in equities would prompt more safe-haven demand for gold and silver. However, a significant rebound in the stock market would likely pressure the metals. December gold futures were last down $1.10 an ounce at 1,506.80. December Comex silver prices were last down $0.063 at $17.62 an ounce.

Asian and European stocks were near steady to weaker overnight. U.S. stock indexes are presently pointed toward near steady openings when the New York day session begins. China markets are closed this week for a holiday.

There are still global economic growth and trade worries hanging over the world marketplace after some dour manufacturing data coming out of the U.S. and European Union earlier this week. There will be a batch of manufacturing reports coming out of the U.S. Thursday that will be very closely scrutinized as U.S. economic recession worries have resurfaced.

Technically, the gold bulls have the overall near-term technical advantage and have stabilized the market this week. Still, a four-week-old downtrend line is in place on the daily bar chart.

Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at this week’s low of $1,465.00. First resistance is seen at the overnight high of $1,511.70 and then at $1,515.00. First support is seen at $1,500.00 and then at $1,490.00.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,551.15.

The projected lower bound is: 1,467.00.

The projected closing price is: 1,509.07.

Candlesticks

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 27 white candles and 23 black candles for a net of 4 white 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 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 57.5367. This is not an overbought or oversold reading. The last signal was a buy 1 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 52.19. 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 26 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 34. 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 4 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 7.950 at 1,507.210. Volume was 8,900% above average (trending) and Bollinger Bands were 43% narrower than normal.

Open     High      Low     Close     Volume___
1,499.2961,518.5001,495.6001,507.210 57,971
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,503.34 1,498.16 1,363.88
Volatility: 20 18 14
Volume: 5,797 1,159 290

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 10.5% above its 200-period moving average and is in an downward 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 bearish on XAU= and have had this outlook for the last 16 periods.

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