Gold ended the week down $3.10 per ounce, closing at $1,193.10. As the following chart shows, gold has entered into a consolidation pattern. The $1,200-per-ounce price has proved to be a strong support level.

COMEX Gold Futures Contracts—Daily

With the U.S. stock market at historic highs and some currencies in emerging markets experiencing turmoil (a condition that could spread and negatively impact U.S. equities down the line), now would be an excellent time to buy gold as portfolio insurance.

Additional factors may also be coalescing to shore up gold. Mining.com reports, “Resurfacing financial fears will ultimately be supportive of gold, says Reuters in a study published this month.

“The precious metal is being weighed down by the strong US dollar, and a sell-off is possible, triggered by weakened emerging markets, writes Rhona O’Connell, Head of Metals for the GFMS team at Thomson Reuters.

“‘[The] bear market in 2018 has largely reflected the continued strength in the dollar, driven in part by trade wars and latterly by the crises in Turkey and Venezuela, with the contagion into other emerging markets’ currencies,’ writes O’Connell.”

Rick Andrews is president of Avant Capital Management