Gold prices have managed to stay above their 200-Day Moving Average (DMA) of $1,775, according to Credit Suisse strategists. This is a positive sign as it suggests that the bright metal could be on track to remain strong.
The 200-DMA is a long-term indicator that is used to determine the overall trend of gold prices. It is calculated by taking the average closing price of gold over the past 200 trading days. A rising 200-DMA suggests that gold prices are on an uptrend, while a declining 200-DMA suggests that prices are on a downtrend.
However, gold prices have recently fallen below their 55-DMA of $1,859. This suggests that the short-term trend of gold prices is bearish. In order for the uptrend to be reasserted, prices must move above $1,890/1,900. If this happens, gold prices could retest the long-term resistance of $1,973/98.
The long-term resistance of $1,973/98 is the highest level that gold prices have reached since the record highs of 2020 and 2022. If gold prices manage to break this resistance, it could signal a new bull market for gold prices.
In order for gold prices to move higher, investors must remain confident in the metal. This means that investors must be willing to take on risk and hold onto their gold investments, even if prices dip.
Gold prices are also influenced by global economic and political developments. If there is a period of economic and political stability, it could give gold prices a boost. On the other hand, if there is a period of economic and political instability, it could put downward pressure on gold prices.
Overall, gold prices have managed to stay above their 200-DMA, which is a positive sign. However, in order for gold prices to move higher, they must break past the long-term resistance of $1,973/98. In addition, investors must remain confident in the metal and global economic and political developments must remain stable. If all these conditions are met, gold prices could potentially reach new record highs.
