Gold turned bullish since the breakout of the coronavirus in early 2020, as central banks and governments kept pumping cash into markets, depreciating currencies. The price moved above $2,000 in August 2021 and again in March 2022, but couldn’t hold the gains above that major level and started retreating lower since then. Although, the retreat since then has been mainly due to enormous USD strength as the FED has been raising interest rates at a very fast pace.

The USD has been the best-performing currency in 2022 despite the retreat in the dollar in the last two months. So investors looking for something else besides the USD did quite well holding Gold longs. After all, Gold was a solid asset to park the cash in a rough global market during this year.

Gold Daily Chart – The 20 SMA Has Turned into Support

Buyers have pushed the price above the 200 SMA

With the retreat in the USD, GOLD is looking even safer now and XAU/USD has made a decent bullish move since early November. Moving averages were acting as resistance during the bearish trend earlier this year, but now they have turned into support, particularly the 20 SMA (gray) which shows that the pace of the uptrend is quite strong.

Gold is trading close to $1820, which is just close to the closing level last year of $1829. Compared to stock markets, bonds, or cryptocurrencies, Gold has been performing great. What gets overlooked is how well gold did in non-USD terms, as it gained against all currencies and other assets.

Fundamentals are also looking increasingly bullish for Gold, after the US confiscation of Russian currency reserves which should be a tailwind for gold for decades. Global central bank rates should peak next year, a debt crisis is brewing in the Eurozone, cryptocurrencies are under attack, and many other elements are in place for a long-term bullish trend in Gold. So, we are looking to open a long term buy Gold signal after a retreat to $1,800, which should turn into a support zone now.

Gold XAU Live Chart