Although I have shared a lot of analysis for gold these days, long-term investors actually do not need that much and complicated analysis. By using only two moving averages, we can have an insight into long-term gold investments.
Gold has moved along these two moving averages since the 1970s. Here, I have shown arrows where the averages are used as support and resistance for a better understanding of the situation. Gold, which is currently priced around $1917, can be expected to drop as low as $1852. This decline will not mean an entry into the bear market for gold. Weekly closings below this level are considered bear markets. But since history, this moving average has always been decisive. (Weekly EMA 85)
Around this level will be a buying opportunity for gold. In the case of an uptrend, an ascending triangle breakout seems possible.
In bear scenarios that lasted for about 5 years, gold always remained above 350 RMA per week. This is a big indicator that gold is always rising in the long run. It fell below this level only between 1997 and 2002, but later recovered and rose above it. Therefore, it would not be wrong to take this level as a reference.
Gold has moved along these two moving averages since the 1970s. Here, I have shown arrows where the averages are used as support and resistance for a better understanding of the situation. Gold, which is currently priced around $1917, can be expected to drop as low as $1852. This decline will not mean an entry into the bear market for gold. Weekly closings below this level are considered bear markets. But since history, this moving average has always been decisive. (Weekly EMA 85)
Around this level will be a buying opportunity for gold. In the case of an uptrend, an ascending triangle breakout seems possible.
In bear scenarios that lasted for about 5 years, gold always remained above 350 RMA per week. This is a big indicator that gold is always rising in the long run. It fell below this level only between 1997 and 2002, but later recovered and rose above it. Therefore, it would not be wrong to take this level as a reference.
Comment:
Gold has turned its direction towards critical support again. A weekly candle close below $1860 would be very dangerous.
