Silver 1 OZ 999 NY (XAG=X) prices up; FOMC minutes on deck
Gold and silver prices are moderately higher in early U.S. trading Wednesday. There are lingering geopolitical matters that have many traders and investors looking to the safe-haven metals as an investment. December gold futures were last up $8.20 an ounce at 1,512.20. December Comex silver prices were last up $0.19 at $17.89 an ounce.
Asian stocks were mostly weaker overnight, while European shares were mostly up. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Risk appetite has up-ticked a bit at mid-week, on reports China says it is still open to a trade deal despite the latest U.S. sanctions imposed on that nation this week. There are also reports the U.S. and China may soon reach a limited deal, which President Trump has said he would not accept. Trade negotiations between the world’s two largest economies are taking place in Washington, D.C. this week. Many market watchers are still very skeptical the two nations can reach any kind of trade agreement anytime soon.
The U.S. data point of the day is the Federal Reserve’s FOMC minutes that are due out at 2:00 p.m. eastern time. Federal Reserve Chairman Jerome Powell on Tuesday said in a speech the Fed will be purchasing more securities in an effort to keep short-term lending markets more liquid. The market place deemed his speech Tuesday as leaning toward the dovish side of U.S. monetary policy. Powell gives another speech today. FOMC minutes deemed dovish by the marketplace would likely boost gold and silver prices.
Nymex crude oil prices are firmer and trading around $53.00 a barrel today. Reports said Saudi Arabia’s oil capacity will be back to normal by November, or before, following the early-September missile attack on a major Sauid oil installation. The other key “outside market” sees the U.S. dollar index slightly down in early U.S. trading.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.71.
The projected lower bound is: 16.73.
The projected closing price is: 17.72.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 69.5316. This is not an overbought or oversold reading. The last signal was a buy 5 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 49.93. 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 24 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 8. This is not a topping or bottoming area. The last signal was a buy 5 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 sell 22 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.020 at 17.690. Volume was 8,900% above average (trending) and Bollinger Bands were 6% narrower than normal.
Open High Low Close Volume___
17.720 17.951 17.620 17.690 38,315
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.51 17.62 15.88
Volatility: 27 35 23
Volume: 3,832 766 192
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.XAG= is currently 11.4% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 9 periods.