Buy Pullbacks in Gold - Forex News by FX Leaders
The 50 SMA has become a defining factor for Gold

Buy Pullbacks in Gold

Posted Monday, July 20, 2020 by
Skerdian Meta • 1 min read

GOLD has been bullish for more than a year and after a small pause in Q4 of last year, buyers came back again. The events of this year with the Iran-US tensions, as well as the coronavirus outbreak have helped keep safe havens and Gold bullish. They went through a shock, when the USD surged after the coronavirus broke out in Europe, but made a quick reversal and have remained bullish since then.

In late May we saw a consolidation, as the sentiment improved for a while, following comments form European leaders for a coronavirus recovery fund. But, the buyers returned once again and sent Gold above moving averages on the H4 time-frame chart.

Moving averages have turned into support for Gold, the 50 SMA (yellow) in particular. This moving average has reversed the price back up many times, despite being pierced. Last week we saw a break of the 50 SMA, but the price reversed again and climbed back up. So buyers remain in charge in Gold and we will try to pick another pullback down, when that takes place.

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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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