Gold saw a strong quarter with an opening price of $1,521 in January and a closing price today of $1,637 for a +7.6% gain in the first three months of 2020. This comes after price broke above the 38.2% Fibonacci retracement level in the second quarter of 2019 which was a level that acted as resistance during the 6-year bear market after price peaked at an all-time high of $1,923 in the summer of 2011. 2019 saw price break above the critical 50% retracement level which put gold back in a bullish trend, and this past quarter saw the trend confirmed with a push above the 61.8% golden retracement level as well.
The Relative Strength Index(RSI) is indicating bullish momentum behind price with the green RSI line rising above its purple signal line, as well as both lines being above the centerline at the 50 level. An RSI reading above 50 indicates a healthy RSI reading and bullish momentum.
The Price Percent Oscillator(PPO) is indicating bullish momentum as well with the green PPO line above its purple signal line, and both lines rising above the centerline at the 0 level. Neither the PPO line or signal line crossed below the centerline during the 6-year bear market which indicated that no bear trend in momentum ever took hold, and that a bullish pullback instead was taking place.
Current short-term and long-term views on gold remain bullish, especially with the amount of money being printed by central banks across the globe as they continue to fight the economic slowdown caused by the coronavirus. The more they print, the more they’ll devalue their respective currencies, the better gold will perform. It’s still my opinion that gold remains on track to test its all-time high sometime this year with the potential to create a new all-time high.
The Relative Strength Index(RSI) is indicating bullish momentum behind price with the green RSI line rising above its purple signal line, as well as both lines being above the centerline at the 50 level. An RSI reading above 50 indicates a healthy RSI reading and bullish momentum.
The Price Percent Oscillator(PPO) is indicating bullish momentum as well with the green PPO line above its purple signal line, and both lines rising above the centerline at the 0 level. Neither the PPO line or signal line crossed below the centerline during the 6-year bear market which indicated that no bear trend in momentum ever took hold, and that a bullish pullback instead was taking place.
Current short-term and long-term views on gold remain bullish, especially with the amount of money being printed by central banks across the globe as they continue to fight the economic slowdown caused by the coronavirus. The more they print, the more they’ll devalue their respective currencies, the better gold will perform. It’s still my opinion that gold remains on track to test its all-time high sometime this year with the potential to create a new all-time high.