Gold posted a second straight weekly gain as prices found support on Friday (3/15), closing at $1,302.89 per ounce.
Gold prices moved back up to their 50-day moving average and stayed well above their 200-day moving average (see the following chart).
The recent correction from the attempts to break through the resistance level at $1,340 per ounce seems to be over as gold prices returned to an uptrend on the daily chart, as noted last week. The pullback is seen as both normal and supportive of prices continuing their overall upsurge.
Says Peter Krauth, resource specialist for Money Morning, “Chalk it up to normal bull action of three steps forward and one step back as gold continues to climb its golden staircase.
“Although the price of gold has dropped by about $60 from its recent peak, we may have already seen the worst.
“The Fed’s renewed dovish stance has lower real rates back as a driving factor for higher 2019 gold prices.
“And consider too that, seasonally, gold tends to bottom around mid-March then climb through until [the] end of May.
“Gold has already printed a solid bounce back to $1,310 in just the last few days, strongly suggesting its correction has run its course.”
Rick Andrews is president of Avant Capital Management