CNBC: Technical Investors Getting Bullish on Gold

CNBC: Technical Investors Getting Bullish on Gold

Original article and video published on CNBC.com on January 19, 2019.


Unless you’re deeply involved in gold trading, you’ve probably never heard of the golden cross. And no, it has nothing to with Williams Jennings Bryan’s “Cross of Gold” speech. The golden cross occurs when gold’s 50-day moving average moves above its 200-day moving average. It’s considered a bullish sign by professional traders, who have noted that gold is now perfectly poised to start moving upward. According to Cornerstone Macro technician Carter Worth, “Gold has momentum right now.”

Among the reasons we’ve previously highlighted for gold’s movement upward are:

  • Increased safe haven buying;
  • The prospect of lower stock prices; and
  • Gold’s price bottoming out as demand increases.

According to Worth, gold has consistently outperformed a basket of commodities and he expects it to continue doing so. He believes that if gold breaks above $1,300 it will continue even higher to $1,350 before any pullback might occur.

That view is in line with numerous other analysts, although many experts are expecting gold to break above $1,400 or higher by the time the year is over. That will benefit those investors who made the decision to get into gold early before its bull run.

The best time to get into gold was a few months ago when it was still trading under $1,200. Now that it’s gained 10 percent in just the last few months, it’s poised to continue ever higher. So don’t miss out on benefiting from the gains to come.

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