The 20 SMA Turns Into Support for Gold, but Buyers Look Weak
Gold has turned higher today and the 20 SMA is acting as support now
GOLD has been on a really strong bullish trend during most of this year. The sentiment has been negative in financial markets, with everything that has been going on, and this has kept safe havens well bid, but gold and silver reversed lower in the first week of August, and they have been declining since then.
However, the price was trading sideways from the end of September until Monday this week. The USD turned bullish on Monday, after some great manufacturing and services numbers for November. This gave safe havens another kick down, with gold falling around $ 75 in the last two days.
The 20 SMA (gray) has been acting as resistance on the H1 chart for the last two days, but buyers finally managed to push above it earlier today. After that, the 20 SMA turned into support, rejecting the gold price after it was retested form above.
This points to a bullish reversal, but buyers still seem weak, so it is dangerous going long when the decline has been quite strong. Instead, we will look to go short a the 50 SMA (yellow), if it turns into resistance when the price gets there.
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