Gold closed the week at $1,288.40 per ounce, up $12.00 per ounce after hitting a low of $1,267.90 on Tuesday (4/23). Bouncing off approximately $1,268 per ounce is significant since that is where the 200-day moving average for gold prices is (see the blue line in the following chart).
Now may be a good time to buy gold as the support level at the 200-day moving average has held. Buying here and then again when it crosses the 100-day moving average (red line in the previous chart), and then once more when it crosses the 50-day moving average (green line in the previous chart), could be a wise strategy. The potential exists to challenge and possibly break through the previous high of $1,356 per ounce that gold hit in February.
According to Kitco News, in a note written on March 25, 2019, TD Securities said they see “gold prices rising to $1,360 within three months and then moving towards $1,400 next year.”
TD strategists further added, “We suspect that current prices will prompt aggressive CTA (commodity trading advisor) buying along with additional spec length.”
Says Kitco, “Going forward, gold investors should pay close attention to global macro releases that focus on inflation and growth, the note added.”
Rick Andrews is president of Avant Capital Management