Gold prints a golden cross on Tuesday, 1/22/19 to begin the new year. The 50-day MA pierces up through the 200-day MA (by 9 pennies). Gold bugs are performing jigs of joy.
Now that a golden cross has occurred, television pundits will announce blue skies ahead for the yellow metal, but, as/if price pulls back, they will scorn technical analysis and call it voodoo science. It comically happens every time.
Typically, after a golden cross occurs for any ticker or index, price will retreat. This is because it takes a long time, many days and weeks, for price to work higher to cause the 50-day MA to curl higher and eventually pierce through the 200. After price spends all that time ramping skyward, in the chart above price has been moving higher since August, it needs a rest. Gold price edges down off the top right now which is the expectation after the golden cross.
After price has a few days to relax downwards due to all its hard work to create the golden cross, gold will continue higher going forward as long as the golden cross remains. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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