SILVER 1 OZ 999 NY (XAG=X) rates slump
In global markets, spot gold prices were down at $1,219.7 per ounce. Gold prices were under pressure after US Federal Reserve signaled that it will continue to raise interest rates. At the conclusion of its two-day meeting on Thursday the Fed kept its rate unchanged but indicated a hike in December. Higher interest rates raise the opportunity costs of holding gold, which does not pay interest and incurs costs to store and insure. The Fed has already hiked rates three times this year.
Gold also weakened due to a stronger dollar. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.1%, having climbed about 0.8% in the previous session.
A stronger dollar curbs demand for gold as an alternative asset. A stronger dollar and higher interest rate in the US have pushed down global gold prices almost 6% this year. But in India, gold prices have rallied this year as the sharp fall of the rupee against US dollar has pushed up imported cost of gold. Rupee is down around 12% so far this year against the US dollar.
Analysts say that $1,200 is an important level for gold. “With a firmer dollar and the uncertainty of the mid-terms behind us, we see a move through the 100-day moving average and test $1,208-$1,210, with the potential for the psychologically important $1,200 to come into play.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 14.86.
The projected upper bound is: 14.60.
The projected lower bound is: 13.69.
The projected closing price is: 14.15.
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 18 white candles and 31 black candles for a net of 13 black candles.
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 26.0670. This is not an overbought or oversold reading. 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 38.72. 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 47 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 -189.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 sell 9 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.255 at 14.155. Volume was -0% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
14.429 14.439 14.060 14.155 0
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.49 14.41 15.71
Volatility: 27 20 20
Volume: 0 0 0
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 9.9% below 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 2 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.