XAU Long Term View

The price has been trading above 150 SMA ever since 2002 January 20 around USD 292.40 per ounce as we can see in the image. The closest it came to that 150 SMA was on 2008 October 26, held and bounced back up to the highest ever since level of USD 1900 per ounce in 2011 September 04. The reason for this elaboration is to relate the context. The price is back right at the 150 SMA. Now, if this level breaks and hold, the uptrend view since 2002 may change. With this technical view plus other fundamentals like Cyprus out of danger zone containing Euro zone crisis for now, and more importantly recovering and strengthening US Economy are not helping Gold at all. "There is certainly a degree of optimism about the US Economy, and that should lead to some reductions in Gold long positions…there is a scope for Gold to strengthen if economic data isn't as strong as people are hoping, but at the moment, there is a lack of justification to buy in short term".

Just trying to understand and observe if the bullish run has come to an end. So I am keeping the discussion on key levels for another day.

Trade Safe :)