Gold 200 DMA
Gold has pushed straight through now its 200 Daily Moving Average (DMA) which is a significant figure for the shiny metal.
Moving Averages are a popular and widely used indicator to show a trend in price actions over a certain period i.e. a daily moving average.
In effect it smooth’s out the bumps in the road and makes it easier to spot emerging trends. The significance of a positive 200 DMA is that conditions are being consistently met for a bullish run in the yellow metal.
Along with this we are now beginning to see albeit in small quantities a return of gold ETF inflows, which is the first in 14 months!
This is highly encouraging to many investors as the mass outflows of 2013 were the main perpetrator of blame for the gold crash last year. The consequence of this can be appreciated when you take into account the latest World Gold Councils trend report figures.
The data highlighted the momentous 880.8 tonnes of gold supply from ETF outflows was greater than jewellery and bar and coin demand put together, this is despite a surge in bar and coin demand reaching up to 28%. Therefore leaving global supply down to 14% with gold taking the hit.
Meanwhile gold’s status as the ultimate safe haven has returned as the standoff between Russia and Ukraine remains.
Although the Kremlin are in the middle of drafting a counter offer to US demands for a negotiation solution, although we have had news of Russian troops seizing a military hospital in Crimea just a week before Crimea vote to decide on whether to join Russia or remain with Ukraine, in a highly charged referendum.
For now investors are divided some believe a long bull run is on the way others are of the opinion once the geopolitical woes of Ukraine and Russia are settled the gold plateau.