Moving Averages Keeping Gold Bearish
Gold used to be one of the most bullish assets from 2018 when the trade war started between the US and China, until the middle of last year, when Gold made a new record highs. It climbed above the big round level at $2,000 in the first week of August, but couldn’t hold on to gains above that level.
After that fail to hold on to gains above $2,000, GOLD reversed lower and turned bearish. It has been bearish since then, losing around $400 in the process. Moving averages provided support for some time during the decline, but they eventually were broken one after the other.
After the break, they turned into resistance as sellers kept pushing lower, with traditional safe haven assets turning bearish. Cryptocurrencies on the other hand, have acquired the safe haven status, so traders are switching to them, instead of the usual safe havens such as Gold and the JPY, as we mentioned in our Gold forecast for 2021.
This month we saw a retrace higher, but that retrace ended at the 20 SMA (gray) on the daily chat, which is pushing the price down. So, sellers remain in charge here and we will try to sell pullbacks higher. We missed the chance to sell Gold higher this month, against the 20 SMA, but there’s still time for that since the price hasn’t fallen too much. Although, we are remaining on holding for now, observing the price action.
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