Monday 17 February 2014

Gold Market Update

Gold broke out decisively last week from its downtrend dating back to last August, a development that was confirmed by a dramatic high volume breakout by silver on Friday.

Gold broke out decisively last week from its downtrend dating back to last August, a development that was confirmed by a dramatic high volume breakout by silver on Friday.

Gold broke out decisively last week from its downtrend dating back to last August, a development that was confirmed by a dramatic high volume breakout by silver on Friday.

On its 8-month chart we can see that gold broke out both from its downtrend and also from a Head-and-Shoulders bottom. It even managed to close above its 200-day moving average on Friday, although the fact that this average is still falling coupled with an overbought reading on its RSI indicator may lead to gold consolidating a little before it makes further gains. Overall though this is a very positive picture, with a clear breakout, and a now rising 50-day moving average that will lead to a bullish moving average cross if gold can hold its gains made so far or if it advances further.
 

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