Is this the end of the Bearish Gold

V

viktor_k67

Gold is confidently moved above 120-day moving average. Gold spot index (^SPGSGC) is in the up-move since November 5 of 2015. It already have recovered more than 20%. We may see steady nice increase in volume. Does it mean that the Gold hit the bottom and now we will have bullish gold market? For two months, the Gold was moving up despite the rising US dollar - the most positive factor on my opinion. Are big investors slowly moving funds from the volatile stock market into precious metals?

20150116goldspot.png

chart courtesy of marketvolume.com
 
It moved above that average before and just collapsed back into downtrend, I say it doesn't look very attractive to short and it doesn't look good to buy.

Would be looking for something else in a strong trend no guesswork
 
Would someone in the know comment on why Jan1st started the move in gold.
A sample of two is not valid but it was Jan1 2014 that the 20 year US treasury behaved the same and never looked back.
 
eurusdzn said:
Would someone in the know comment on why Jan1st started the move in gold.
A sample of two is not valid but it was Jan1 2014 that the 20 year US treasury behaved the same and never looked back.
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Eh??
 
viktor_k67 said:
ok, why during negative inflation and quite strong dollar Gold moves up for second month in a row??? shouldn't be opposite?
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Hello Viktor,

Generally, Gold is up for two reasons :
Inflation
Safe Haven

In 2011, we were during a deflationary period but Gold reached its all-time highs.
If Gold is up now, this is mainly because of Swiss franc and because shorters begin to lose money. They need to deleverage because they thought Gold would go to USD900. LOL

I think the Gold trade shows an attractive return/risk ratio.
Entry point : USD 1240/1260. Of course, 1240 should hold.
Stop loss : below 1220.

I drew graph below last week. Gold Ounce was @1293. It is still valid.

Chris Mac

gold.gif
 
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