Gold Bounces Off Moving Averages Again - Forex News by Strategia Forex

Gold Bounces Off Moving Averages Again

Posted Wednesday, September 4, 2019 by
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.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of