John Heffernans Gold Report

John Heffernans Gold Report

John Heffernans Gold Report

  • Gold rose to its highest in over a week early Monday, extending gains from the previous session, after US Federal Reserve Chair Janet Yellen skipped any mention of monetary policy in a speech at a central bankers meeting in the United States.
  • Spot gold rose 0.2 per cent to $1,293.96 an ounce by 0343 GMT, after reaching its highest since Aug. 18 at $1,294.88 earlier. It gained nearly 0.4 per cent in the previous session
  • US gold futures for December delivery were up 0.1 per cent to $1,299.50 per ounce.
  • At the meeting in Jackson Hole on Friday, Yellen made no reference to US monetary policy but instead focused on financial regulations, leading traders to expect a slowing in further interest rate hikes.
  • Later in the day, European Central Bank Chief Mario Draghi said the bank’s ultra-loose monetary policy was working and that the euro zone’s economic recovery has taken hold, but refrained from commenting on the single currency’s recent strength.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 1,259.25.

The projected upper bound is: 1,319.95.

The projected lower bound is: 1,277.67.

The projected closing price is: 1,298.81.

PREC.M.XAU= closed up 6.680 at 1,297.710. Volume was 8,900% above average (trending) and Bollinger Bands were 24% narrower than normal.

Open            High                 Low                Close             Volume
1,291.780     1,298.580      1,291.500      1,297.710       10,913

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close:                       1,286.56       1,255.57        1,231.22
Volatility:                10                   11                   12
Volume:                  1,091              218                 55

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 5.4% above its 200-period moving average and is in an upward 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 bullish on XAU= and have had this outlook for the last 25 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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 67.1060. This is not an overbought or oversold reading. The last signal was a sell 9 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 65.04. 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 10 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 155.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 buy 0 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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