Hawaii Six O - Gary Wagner
Gold Within Striking Distance Of $1300
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The entire precious metals complex is trading higher on the day. Gold futures are currently up $4.90 (+0,37%), and fixed at $1293.20. After trading to a high today of $1295.40, gold softened a little bit, closing about two dollars off the intraday high, also trading to a low of $1287.60. What is important about this range is even with a respectable gain on the day, pricing is still caught within a tight and narrow band.
That band created on Friday, January 4th was the net result of dynamic Price swings in which gold traded to a low that day of $1278, and a high of $1300.40.
Since then gold has not been able to break above or below those price parameters. Investors have bid the precious metal up on multiple occasions since January 4th, however on each attempt $1300 has been an insurmountable price point to trade at or above.
In fact, each attempt resulted in gold trading to a lower high than the previous occasion creating a series of lower highs and at the same time higher lows.
That being said there is no question that market sentiment in regards to gold still remains bullish. Beginning after a major climb in pricing at the end of November, when gold was trading at approximately $1213 per ounce.
Moving Averages Are About to Regain Bullish Alignment
On July 24th of last year, the 50-day moving average closed below the 100-day moving average, creating a death cross. At this point in time the moving averages were arranged with longest average (200-day) on top and the shortest average (50-day) at the bottom. This of course is expected, and the proper alignment during a bearish trend.
This alignment would remain up until November 27th of last year when analysts identified the occurrence of a golden cross with the 50-day moving average crossing above the 100-day moving average. This was the first time the shorter 50-day has moved above the 100-day since January 25, 2018. Currently the 200-day moving average is still above the 50- and 100-day moving average, but that is about to change.
The 50-day moving average is $3.40 below the 200-day moving average and has been converging with a higher average since October of last year. The 100-day moving average which is now in bullish alignment when compared to the 50-day moving average, currently at $1231 and could easily cross above the 200-day if the bullish sentiment in the market remains. The last time gold’s moving averages were positioned in perfect bullish alignment was March 23, 2016.
New King of the Hill
Gold is no longer the most precious of the precious metals. When it comes to the most expensive precious metal (gold, silver, platinum and palladium), palladium is now the most expensive metal.
Palladium futures closed at $1327.00 today after gaining $47.00 (+3.68%), a full $27 above gold futures. The pale precious and persistent metal did much more than move to parity with gold. It overtook the precious yellow metal with a vengeance to reclaim its position as the paramount precious metal.
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Wishing you as always, good trading,