Gold Prices Up As U.S. Dollar Momentum Fades
Gold prices are moderately higher in early U.S. trading Monday, supported in part by a slipping U.S. dollar index that fell to a three-week low overnight. Some bargain hunting in the cash market and short covering in the futures market are also featured, following recent losses that drove the two precious metals prices to multi-month lows last week. August gold futures were last up $9.50 an ounce at $1,265.30. July Comex silver was last down $0.146 at $16.215 an ounce.
Technically, gold bears still have the firm overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close in August futures above solid resistance at $1,287.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,238.80. First resistance is seen at $1,270.00 and then at $1,275.00. First support is seen at the overnight low of $1,255.70 and then at $1,250.00.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1,283.34.
The projected upper bound is: 1,275.07.
The projected lower bound is: 1,237.27.
The projected closing price is: 1,256.17.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 74.7470. This is not an overbought or oversold reading. The last signal was a buy 4 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 39.26. 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 buy 4 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 17. This is not a topping or bottoming area. The last signal was a buy 4 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 2 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 3.120 at 1,257.320. Volume was 8,900% above average (trending) and Bollinger Bands were 50% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,252.94 1,287.20 1,302.09
Volatility: 9 9 11
Volume: 1,903 381 95
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 3.4% below its 200-period moving average and is in an downward trend. Volatility is 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 14 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.