⚡Crypto Alert : Start Trading Cryptos with 0 Fees - Click Here

The 20 SMA Keeps Pushing Gold Higher

GOLD has been mostly bullish in 2019 as the sentiment has been mainly negative, due to an escalating trade war and a slowing global economy. This year the bullish trend resumed again and we saw some major moves to the upside, especially as tensions between US and Iran increased in the Middle East. We did see a pullback down in the last few months of last year, as the sentiment improved due to the Phase One deal prospects between US and China. But that pullback ended at the previous resistance at $1,450, which turned into support.

Tensions decreased after the US didn’t follow through after Iran’s attack on US military bases in Iraq. As a result, Gold retreated lower, but it still remained above the 20 SMA (grey) on the daily chart and once that moving average approached close enough, buyers became confident and the upside momentum resumed again.

The outbreak of the coronavirus in China turned the sentiment negative again in financial markets and fear turned the attention to safe havens again. As a result, the bullish momentum gained pace and this time the climb continued, with the 20 SMA pushing Gold higher. The sentiment is expected to be negative and Gold should remain bullish in the meantime.

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