GOLD 1 OZ (XAU=X) interest-rate decision from the US Federal Reserve today
Gold drifted lower for the fourth session running on Thursday, touching 1-week lows at $1222 per ounce in London ahead of today’s interest-rate decision from the US Federal Reserve – widely expected to leave policy unchanged.
The Dollar itself eased back on the FX market, helping cut the gold price in Euro terms to a 2-week low beneath €1070 and the UK gold price in Pounds per ounce to mid-October levels at £930.
Ten-year US Treasury bond prices edged higher ahead of the Fed’s statement, cutting the yield offered to new buyers back to 3.22% from yesterday’s fresh 7.5-year high.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,224.33.
The projected upper bound is: 1,247.35.
The projected lower bound is: 1,201.85.
The projected closing price is: 1,224.60.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 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 black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 46.7783. 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 52.67. 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 59 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 -86. 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 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -1.590 at 1,224.110. Volume was 8,900% above average (trending) and Bollinger Bands were 52% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,227.17 1,209.30 1,267.14
Volatility: 11 12 12
Volume: 1,716 343 86
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 upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect very strong flows of volume out of XAU= (bearish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 19 periods.