GOLD 1 OZ (XAU=X) Upside Potential For Gold Prices

GOLD 1 OZ (XAU=X) Upside Potential For Gold Prices

GOLD 1 OZ (XAU=X) Upside Potential For Gold Prices

Gold is poised to climb in the months ahead despite another U.S. interest-rate hike on Wednesday and prospects for further monetary tightening, said two banks in research notes Thursday.

Following the seventh U.S. rate hike this cycle and with the promise of two more before year-end, I see the potential for the gold focus turning more supportive.

Spot gold Thursday traded as high as $1,308.90 an ounce, although it backed off to $1,304.40 as of mid-morning. This was still a gain of $5.05 for the day.

A break above $1,308/oz could see prices initially return to an area between $1,323/oz. and $1,333/oz.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,321.13.

The projected lower bound is: 1,281.56.

The projected closing price is: 1,301.34.

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 28 white candles and 22 black candles for a net of 6 white 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 51.3744. This is not an overbought or oversold reading. The last signal was a buy 17 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 50.45. 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 99 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 176.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 17 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 14 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 2.520 at 1,301.830. Volume was 8,900% above average (trending) and Bollinger Bands were 64% narrower than normal.

Open High Low Close Volume___
1,299.4601,309.3001,296.9501,301.830 19,987

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,296.72 1,312.48 1,306.63
Volatility: 4 10 12
Volume: 1,999 400 100

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 0.4% below 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 into XAU= (bullish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 3 periods.

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