As we navigate the ups and downs of the stock market, it’s crucial to keep a close eye on key indicators like moving averages and support levels. This week, the price of gold is stuck in a range between the 20-Day MA at 2,719 and the 50-Day MA at 2,643. Will we see a break above resistance or a drop below support?
The 50-Day MA has been on a steep incline since early October, indicating strong bullish momentum and increasing demand for gold. Yesterday, we saw the first test of support at the 50-Day MA since the August bullish reversal, highlighting the importance of this level.
Monthly support at 2,602 is crucial for maintaining the current uptrend in gold. A drop below this level could signal a shift in the price structure and potentially lead to further downside. It’s worth noting that 2,602 also served as support for the month of October, adding to its significance.
Despite the potential for consolidation or a slight pullback, the overall trend for gold remains positive. Since February, we’ve seen a consistent pattern of higher monthly lows and higher highs, indicating strength in the uptrend. Keep a close eye on how November plays out, as an inside month pattern could further solidify the bullish outlook for gold.
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