uploads///ABX vs GC

Gold Crosses Its 200-day Moving Average


Oct. 21 2015, Published 11:54 a.m. ET

200-day moving average

Breaking its 200-day moving average price, gold peaked at $1191 per ounce on October 15, 2015. It fell from these high numbers on October 16 and October 19, losing almost 1.3%.

October 20 was an up-day for all precious metals. Gold, silver, platinum, and palladium rose 0.40%, 0.48%, 0.54%, and 0.98%, respectively. Gold rallies in 2015 have mostly failed to reach the 200-day moving average mark, which acts as a threshold. One can also call it a resistance level.

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Though prices rose on Tuesday, October 20, 2015, the average trading volume for mining companies such as Coeur Mining (CDE), First Majestic Silver (AG), New Gold (NGD), and Barrick Gold (ABX) saw falls in volume. These four stocks together make up 10.2% of the VanEck Vectors Gold Miners ETF (GDX). The ETF rose almost 4% on October 20. Above is a chart of gold futures prices versus Barrick Gold prices.

International risks

Gold supporters hoped that it would push to $1200 per ounce after crossing the 200-day moving average mark. However, the undecided move on interest rates kept gold lower. Prices had been climbing since September 17, 2015, when the Fed announced a decision to keep rates unchanged.

International risks threatened to dent domestic growth and depress inflation. Gold had fallen marginally by 0.17% on a trailing-five-day basis. The fall in prices was likely influenced by strong US housing data backing the US dollar, pushing bullion prices downward.

Gold-backed ETF iShares Gold Trust (IAU) gained 0.80% on Tuesday, October 20, due to the gains in gold.

Platinum and palladium seem to be free from the shackles of the much-discussed Volkswagen scandal. Platinum and palladium closed at prices of $1020 and $695 per ounce, respectively. The inverse relation that platinum and palladium showed during the past month is now in line.


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