The Battle for Gold

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The Battle for Gold, as 2020 draws to a close, it’s been an extremely difficult year for many people.


A Tough Year Ends
From Rock Bottom to Rallying Gold
200-day moving average







A Tough Year Ends


As 2020 draws to a close, it’s been an extremely difficult year for many people.

The pandemic has caused disruption and hardship to countless individuals and businesses across the globe.

But despite all of this, there is one asset class that has held up rather well: precious metals. 


Investors have turned to gold as a haven during times of economic uncertainty,
with the price reaching its highest level since 2012 in August 2020 at $2159 per ounce.

Silver also saw strong gains over this year; prices rose
from around $16 per ounce in January to almost double that amount by November – peaking at just above $30 an ounce! 


In addition to their traditional roles as safe havens during turbulent times,
precious metals are increasingly being seen as attractive long-term investments due to their limited supply relative demand growth potential – making them ideal for portfolio diversification strategies too!
This was especially true in 2020 when stocks experienced significant volatility due largely (but not exclusively) COVID-19-related news flow – resulting in investors turning towards alternative assets such as gold and silver instead.


 Precious metal ETFs have also grown significantly over this period; both physically backed funds such as US Global GO GOLD & Precious Metal Miners ETF (GOAU) or iShares Gold Trust (IAU),
along with leveraged products like ProShares Ultra Silver ETF (AGQ).

These provide exposure without having direct ownership
which can be beneficial depending on your individual needs/goals etc…


Overall then it’s clear that although we might be ending what has undoubtedly been a very tough 12 months
for most people globally – ultimately our trusty old friend ‘precious metal’ hasn’t let us down once again
proving itself resilient even against some heavy odds!



From Rock Bottom to Rallying Gold


The gold market has been on a wild ride over the past few weeks,
with prices swinging from highs to lows and back again. After hitting its triple bottom of 1,615 USD on August 13th,
gold staged a strong recovery rally that gained momentum over the last four weeks.


This advance was characterized by choppy price action
as investors tried to make sense of conflicting economic signals in both the US and global economies. 

On one hand, there have been signs of improvement in certain sectors such as housing starts which could point towards an eventual rebound in growth; while at the same time there is still considerable uncertainty around how long it will take for economic activity to return to pre-pandemic levels. As such investors have become more risk-averse and sought out safe-haven assets like gold for protection against potential volatility or downturns ahead.


This shift towards safer investments helped push up demand for physical bullion leading into September’s FOMC meeting where Chairman Powell announced additional monetary stimulus measures including an extension of near-zero interest rates until 2023 – further boosting investor confidence in precious metals markets overall.  

 At current levels (1,934 USD), many analysts are predicting that this upward trend may continue well into 2021 given no major disruptions from either fiscal or monetary policies worldwide – making now an ideal opportunity for those looking to add some sparkle to their portfolio with exposure through ETFs or futures contracts!







200-day moving average


As investors and traders, it’s important to stay up-to-date on the latest market trends. Recently, prices have been oscillating around the 200-day moving average and running into a bearish wedge at the same time. This is an interesting development that could mean big things for investors in both short-term and long-term investments. 

So, what does this mean? Well, when prices are oscillating around a certain value like they are currently with the 200-day moving average then it means there is some uncertainty in terms of which direction they will go next – whether up or down. Generally speaking, if price action stays within these boundaries, then we can expect more sideways movement rather than any major trend changes occurring anytime soon as buyers and sellers battle for control over pricing levels. 

The other aspect of this situation worth noting is that prices have also run into a bearish wedge pattern at the same time as hovering near their 200-day MA level; meaning that there may be an impending downtrend ahead if current conditions persist over time (bearish wedges usually indicate such). Investors should therefore pay close attention to how price action develops from here on out so as not to get caught off guard by any sudden shifts in momentum or directionality due to changing investor sentiment towards particular assets or markets overall.