CNBC/Gina Francolla & Fred Imbert/05-23-17
Gold is up nearly 10 percent this year and might be primed for more gains if a signal tracked by technical analysts triggered Monday is any guide.
A small gain was enough to push the metal’s 50-day moving average price above the average price of the last 200 days, forming what’s known as a “golden cross” in technical analysis circles. This is seen as a positive signal that demonstrates an asset is outperforming so well in the short-term that it may reverse a longer term downtrend.
PG View: The golden cross occurred in the spot market two-weeks ago, confirmation in the futures offers further encouragement.
