Gold Remains Bullish After Bouncing Off the 50 Daily SMA
GOLD has been pretty bullish since September 2018. It made a strong rally during summer last year, as the global economy weakened considerably, with the trade war reaching its peak. in Q4 the uptrend slowed down, but it picked up pace again since late December.
The tensions between US and Iran and then coronavirus have hurt the sentiment, sending safe havens surging higher, so Gold has attracted strong bids so far this year. Gold reached $1,690 in late February, as coronavirus spread in Italy, but retreated lower in the following week.
The pullback was quite strong for about a day, although it didn’t last long. The 50 SMA (yellow) turned into support for Gold. The price formed a doji above that moving average the next day, which is a reversing signal, then we saw a bounce off that MA. Now, buyers are back in control and they are trying to push above February’s high. I think the previous high will be broken and Gold will remain bullish as long as coronavirus stays, which is also spreading fast across the globe.
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