Although the gold market has been lagging behind, it may not be time to write it off just yet…
If you look at the gold market right now (the chart we’ll look at in today’s video is the one-year futures contract), you’ll notice that gold futures just broke below their 200-day moving average.
And that’s not a positive sign…
When an asset typically breaks below its 200-day moving average, it’s a bearish sign or an indication that the bears are winning the war over the bulls.
However, in this case, the gold market has been in a strong uptrend over the past year (or really since COVID-19 took the world by storm)… and that matters a lot.
Why You Shouldn’t Give up on the Gold Market
Head Trader Roger Scott
Gold is a defensive asset, and is generally considered to be a safe haven investment in times of economic uncertainty. Gold also tends to be seen as a hedge against inflation, and in some cases, even a stock market crash.
The overall market has been relatively strong lately; however, it’s starting to show some cracks in its foundation.
And it’s either going to cause a short-term reversal or potentially an even longer-term reversal in the gold market.
But how do I know this?
I used my RSI oscillator. The Relative Strength Index (RSI) is a momentum indicator that can measure the magnitude and velocity of recent price changes to determine if the price of a stock is overbought or oversold.
And right now it’s telling me we’re oversold…
Now, I’m not suggesting the market is going to turn bearish. But what I am suggesting is that there’s a possibility the gold market could go through a short-term reversal and that gives us an opportunity to profit.
Check out my short video on the gold market and leave a comment in the section below. Did you find today’s analysis helpful? Where do you think the gold market is headed right now and why? Are you bullish or bearish?
P.S. This 29-year market veteran just made a bold prediction.
He’s claiming that an enormous profit opportunity is brewing in the gold market… the likes of which haven’t been seen in over 20 years.
And that people who put even a small sum of money into the right gold stocks today could see their investment multiply many times over.
Given today’s rocky political climate and the nonstop stimulus money getting injected into our global economy, gold is becoming the one safe haven in a sea of growing uncertainty.
Click this link to learn more about gold… and why one expert’s calling it a “can’t-lose” commodity.
