GOLD has been trading on a bullish trend since mid-March, after it crashed around $250 lower, as markets turned into the USD as a global reserve currency. The decline stopped at the previous low at $1,450, so that level turned into resistance and since then buyers have been in control.
Although, the big reversal ended towards the end of March and since the trend has slowed. But, buyers remain in control nonetheless. Gold topped at $1,764 by the middle of last month and hasn’t been able to make new highs since then. But, lows are getting higher, which means that the trend is still bullish.
Last week we saw a decent pullback lower, worth more than $80. But that ended above the previous lows earlier this month. Gold reversed back up, moving above moving averages, which turned into support immediately. First, the 50 SMA (yellow), then the 200 SMA (grey).
Earlier today we saw a pullback lower, but it ended at the 200 SMA again, which was aided by the 50 SMA on the H1 chart. Gold bounced off those two moving averages a while ago, after the US ISM manufacturing PMI report didn’t show any decent bounce and missed expectations. So, the upside momentum continues in Gold and we will try to pick another retrace lower so we can go long.