Gold closed above $1,300 per ounce on Friday (1/25)—its highest price since June 2018—as the U.S. dollar dropped and global growth worries rose among investors.
The dollar slid ahead of a U.S. Federal Reserve meeting next week, when the central bank is widely expected to leave interest rates unchanged.
Gold prices recently experienced a “golden cross,” which occurs when the 50-day moving average rises above the 200-day moving average. This reversed the inverted condition for gold prices that had existed for the last seven months, helping to solidify the precious metal’s current bull market status.
CNBC reports, “Over the last few months, all that glitters has been gold … the precious metal is up 10 percent since hitting a 52-week low in August … flashing a secret buy sign: The ‘golden cross.’
“Investors have typically viewed this as a bullish signal that points to more upside—and Cornerstone Macro technician Carter Worth believes the gold bulls might just be right.”
Rick Andrews is president of Avant Capital Management