GOLD 1 OZ (XAU=X) sign that investors are concerned and seeking a safe haven

GOLD 1 OZ (XAU=X) sign that investors are concerned and seeking a safe haven

The ‘paper’ money that we all use is being printed by Governments at an alarming rate. Since this cash is not backed by a physical asset, it is easy, but not good, to keep printing more of it.

Government debt around the world is at record highs. The US Government has debt in the trillions, Australia, the UK and most of (other than ) are all up to their eyeballs in debt.

All this debt puts extreme pressure on the value of a country’s currency.

As a result we are seeing extreme levels of volatility in currency markets.

When there is volatility in currency markets, especially the US dollar, interest turns to safer investments, such as gold.

Right now there is money flowing into gold stocks, physical gold and gold ETFs.

This is a sign that investors are concerned and seeking a safe haven for their money.

As with any type of asset, if demand increases, eventually price increases.

Investing in gold is that it tends to increase in value due to inflation.

That $10 in your pocket will buy you $10 of goods today, but in 10 years’ time, it will by a lot less. That’s inflation working against you. Imagine being able to buy your parents’ home at the price they did. Scary isn’t it?

Gold on the other hand tends to increase in value with inflation. It’s considered ‘inflation proof’ as it is likely to retain your purchasing power.

Now we might not be returning to the old days when we used gold to purchase goods and services, but if you think like the rich, and look at these reasons I’ve outlined, there’s solid evidence that now is the time to be moving some of your investment money into gold.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,224.71.

The projected lower bound is: 1,179.36.

The projected closing price is: 1,202.04.

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 26 white candles and 24 black candles for a net of 2 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 67.1165. This is not an overbought or oversold reading. The last signal was a sell 31 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 52.39. 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 35 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 58. This is not a topping or bottoming area. The last signal was a buy 3 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 1 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 3.190 at 1,202.450. Volume was -0% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open High Low Close Volume___
1,199.0101,205.7801,196.6001,202.450 0

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

Moving Averages: 10-period 50-period 200-period
Close: 1,195.66 1,199.64 1,280.01
Volatility: 12 12 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 6.1% below its 200-period moving average and is in an upward trend. Volatility is 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 25 periods.