Gold Bounces Off Moving Averages Again
Skerdian Meta • 1 min read
GOLD has been bullish for a year now since it reversed at $1,160 in August last year. The escalating trade war and the increasing weakness in the US economy have been helping safe havens such as Gold, the JPY and the CHF. The trend has turned particularly strong since the last week of May.
Since then, we haven’t really seen Gold make any decent retrace lower. What we have seen when Gold wasn’t surging has been mainly consolidation, waiting for moving averages to catch up. Once they caught up, the consolidation has ended and we have seen the next surge higher.
At the end of last week, Gold lost some of the shine and consolidated for a few days, before making the next bullish move yesterday. The 50 SMA (yellow) and the 100 SMA (green) did a good job providing support and holding for a few days, until the US ISM manufacturing report showed that this sector fell into contraction in the US, just like in the rest of the world.
Gold climbed around $50 yesterday, so the pressure remains to the upside and I expect it to be that way for the foreseeable future. I mean, everything is pointing up, with the trade war escalating, global economy slowing up considerably and Brexit heading towards a no deal scenario. So, once moving averages catch up, it will be time to look for a buying chart setup.