First of all, the noble metal recovered from its lowest values since the beginning of this month, which is one of the worst for the metal historically.
Secondly, the price of gold is over its 200-day moving average, which is a relatively good signal for "golden bugs." They could position their stops to limit the loss, when the metal was down, below the specified value.
And thirdly, the 50-day average of gold is over 200-day one. Or the medium-term trend for the metal is extremely favorable.
There is a very simple gold trading system that gives excellent historical results. More precisely, over 12% of the average annual income if gold is bought when the 50-day average is over 200-day and goes out when the shorter term falls below the longer-term.
That is, there is now a signal to buy gold ...
And next, gold is very close to breaking the upper boundary of a descending long triangle. For such a breakthrough, as well as a confirmation signal, we can speak with a gold increase above $1,290. Such growth may be the first gold price rise to test its historic peak of over $1,900.
From a fundamental point of view, the prospects for gold are also good. There is an increased demand for physical gold in the first half of the year, including the second largest market - India.
In addition, there is an increasing expectation that the Fed's aggressive policy will slow down, which is reflected in the weakness of the dollar, to which gold is inversely proportional. Or, further preserving the weakness of the dollar, can ultimately unlock the positive potential of the metal.
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