Asset Watch
Thursday, March 14, 2024
Gold’s 20-week moving average has been a solid momentum indicator, and the yellow metal held above it during the run to record highs in 2020. Likewise, the 20-week MA acted as support in February/March 2023 en route to another all-time high and ended the pullbacks in November 2023 and February 2024.
As a result, the key level (near $2,040) remains the line in the sand. Historical breakdowns produced further weakness and gold struggled to regain its prior peaks for several months. In contrast, long positions were prudent when the yellow metal traded above the 20-week MA.
So, will gold shine even brighter in the months ahead, or are correction clouds forming?