Gold Remains Bullish After Bouncing Off the 50 Daily SMA - Forex News by FX Leaders
The pullback is over now for Gold

Gold Remains Bullish After Bouncing Off the 50 Daily SMA

Posted Friday, March 6, 2020 by
Skerdian Meta • 1 min read

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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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.
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