The new quarter sees fund managers allocating cash to their chosen asset classes in the first few days and it will be interesting to see how this flow of funds affects gold. The first few days of the quarter can often set the tone for the following few months.
The charts remain bearish with gold trading below the 50 and 200 DMAs and tracing the 20 DMA as it moves lower, having crossed through the longer moving averages a couple of weeks ago. We are flat in the market and watching for signs of stability and a bottom before looking to re-enter to the long side.
As we still consider gold to be in a long term bull market, we rarely take a short positon, unless the set up is particularly persuasive.
The charts remain bearish with gold trading below the 50 and 200 DMAs and tracing the 20 DMA as it moves lower, having crossed through the longer moving averages a couple of weeks ago. We are flat in the market and watching for signs of stability and a bottom before looking to re-enter to the long side.
As we still consider gold to be in a long term bull market, we rarely take a short positon, unless the set up is particularly persuasive.