GOLD 1 OZ (XAU=X) focus of the market has turned slightly to geopolitical issues

1 OZ (XAU=X) focus of the market has turned slightly to geopolitical issues

PRICES rose against a falling US Dollar on Friday, halving last week’s 1.9% drop to trade back above $1220 per ounce as Western stock markets fell and crude rallied from this month’s 17% plunge so far.

Gold priced in the British Pound meantime re-touched £950 for a second day running, adding 2.0% for a week begun by one senior Conservative calling Brexit “a failure of British statecraft on a scale unseen since the [1956] Suez crisis” as he became the first of 8 ministers to resign over the draft EU withdrawal deal which Prime Minister Theresa May must now put before Parliament.

Two senior ‘Brexiteer’ members of May’s minority Conserative government today gave her their support.

“The issues around Brexit have invigorated a little bit of safe-haven buying in the [gold] market,” Reuters quotes Daniel Hyne at Australasian bank ANZ.

“The focus of the market has turned slightly to geopolitical issues.”

“Investors are a bit more interested in gold,” agrees Dutch bank ABN Amro, “[and] the momentum is up.

“We may go to $1250 in the short term.”

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,245.77.

The projected lower bound is: 1,198.05.

The projected closing price is: 1,221.91.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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 65.1321. This is not an overbought or oversold reading. The last signal was a buy 2 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 53.03. 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 65 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 3. This is not a topping or bottoming area. The last signal was a buy 2 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 12 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 8.480 at 1,221.390. Volume was -0% below average (neutral) and Bollinger Bands were 3% narrower than normal.

Open High Low Close Volume___
1,212.9401,225.2901,212.4001,221.390 0

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

Moving Averages: 10-period 50-period 200-period
Close: 1,216.34 1,210.75 1,263.50
Volatility: 11 13 12
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.

Summary

PREC.M.XAU= is currently 3.3% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 3 periods.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.