The Gold Report

The Gold Report

The Gold Report

$GLD

*A North Korean diplomat on Tuesday warned that his country was ready to send “more gift packages” to the United States as world powers struggled for a response to Pyongyang’s latest nuclear weapons test.

*The USD on Wednesday edged down against the JPY, getting closer to a recent 4-1/2 month low, pressured by simmering tensions on the Korean peninsula and on comments by a Federal Reserve official about low US inflation.

*Fed policymakers signaled caution on weak inflation and a few backed delaying further interest rate hikes. Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.

*Spot Gold may retest resistance at $1,345 per ounce, a break above which could lead to a gain to the next resistance at $1,350, said Reuters technical analyst Wang TaGold closed up 0.290 at 1,338.650.

Volume was 8,900% above average (trending) and Bollinger Bands were 29% wider than normal.

Technical Outlook

Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

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

Gold is currently 8.3% above its 200-Day MA and is in an upward trend.

Volatility is low as compared to the average volatility over the last 10 Days.

Our volume indicators reflect very strong flows of volume into Gold (bullish).

Our trend forecasting oscillators are currently bullish on Gold and have had this outlook for the last 32 periods.

Our momentum oscillator is currently indicating that Gold is currently in an overbought condition.

Candlesticks

A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white candles.

A spinning top occurred (a spinning top is a candle with a small real body).

Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close).

During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum

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 86.9285. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 16 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 77.99. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 17 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 124.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 12 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 7 period(s) ago.

 

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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