Gold 1 OZ (XAU=X) trading at a more than one-week high as growth concerns spark renewed safe-haven demand

Gold 1 OZ (XAU=X) trading at a more than one-week high as growth concerns spark renewed safe-haven demand

Gold 1 OZ (XAU=X) trading at a more than one-week high as growth concerns spark renewed safe-haven demand

Gold prices are trading at a more than one-week high as growth concerns spark renewed safe-haven demand for the yellow metal; however, one analyst isn’t convinced that the current rally can be sustained.

December gold futures are starting the week with a 1% gain Monday after disappointing economic data in Europe raised recession fears amid a slowing global economy. Although the economic outlook in the U.S. isn’t as dire, the latest economic numbers still point to slower economic activity. December gold futures last traded at $1,529.50 an ounce.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,565.06.

The projected lower bound is: 1,483.45.

The projected closing price is: 1,524.25.

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 25 white candles and 25 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 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 82.8394. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 57.32. 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 18 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 74. This is not a topping or bottoming area. The last signal was a buy 7 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 17 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 5.335 at 1,522.085. Volume was 8,900% above average (trending) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
1,516.4051,526.8001,511.1001,522.085 60,462
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,500.15 1,485.97 1,354.04
Volatility: 12 18 14
Volume: 6,046 1,209 302

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 12.4% above its 200-period moving average and is in an downward trend. Volatility is low 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 8 periods.

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