Gold Rises Above $1320 an Ounce on Technical Analysis and Weak Economic Data

//Gold Rises Above $1320 an Ounce on Technical Analysis and Weak Economic Data

Gold Rises Above $1320 an Ounce on Technical Analysis and Weak Economic Data

  • Gold in the news

Gold rose to a three month high and traded over $1320 on Friday, bolstered by a weakening American dollar, soft U.S. economic data and gold market technical factors that support a gold price rising even further. From a technical perspective, Friday’s action in gold trading was especially significant in that it crossed over the 200 day moving average, a key indicator as to the strength of the underlying gold market.

On the day, gold advanced by over $18, closing at $1318.60 an ounce on the Comex exchange in New York. With the charts turning decidedly bullish with the crossing over the 200 day moving average, short sellers of gold took notice and began short covering to reduce looses and exposure, in anticipation of even higher gold prices in the days to come.

With gold now solidly above its 200 day moving average of just under $1312 an ounce, silver followed suit and closed up over a dollar an ounce at $21.42. From a psychological perspective, gold continues to build momentum after decidedly breaking through the $1210 support level earlier this year. $1300 an ounce was yet another psychological and technical battle won, a reclaiming of ground that was lost in the very difficult for gold year of 2013. With the U.S. dollar trading markedly lower over the last two weeks, gold is looking better by the day in comparison to paper money, and the flood of assets from U.S. currency into real money such as gold and silver doesn’t look to be slowing down any time soon.

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2016-10-31T12:20:05-04:00By |Categories: Gold News|

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President and CEO of National Coin Broker
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