After falling below the 100-day and 200-day moving average the previous week, gold prices climbed above both averages and continued up through the 20-day moving average last week. Gold closed the week at $1,622 per ounce (see the following chart).

Holding above the 20-day moving average, which is currently around $1,590 per ounce, provided support for prices during the rest of the week and put gold prices back in bullish territory.

Other technical indicators are supporting the bullish trend by going up. Momentum has made a U-turn and climbed above its midline and RSI, moving back into positive ground (see the chart).

It would appear the previous sell-off in gold precipitated by the need for investors to cover losses in other asset classes is over. The market has now been restored to its previous condition, and the extreme measures taken by the Treasury and Federal Reserve to combat the economic shutdown should provide bullish support for gold going forward.

Rick Andrews is president of Avant Capital Management.