In 2019, gold bulls are still fighting back, and spot gold once hit the $1290 / oz mark.
Clif droke, an analyst, believes that gold's medium-term bullish trend will continue regardless of the dollar, Treasury yields or stock markets, and there is still a lot of room for bulls to follow.
Gold in 2018 can be said to have opened high and gone low. After the big rise at the beginning of the year, it suffered a decline for six consecutive months, becoming the first year of annual decline since 2015.
However, gold has gained nearly 6% since testing the bottom of $1160 / oz in late August. At the end of the year, the rally was extremely strong, especially against the S & P 500.
Since December, the gold price / S & P 500 index has risen sharply.
As long as the gold price / S & P 500 index stays above its rising 15 day average, gold will continue to be bullish, according to droke.
In addition, the performance of US Treasury bond yield also needs to be paid attention to.
The 10-year US Treasury yield index (TNX) continues to be in the downward trend in the near future, and there is no sign of bottoming, which is also good news for the medium-term trend of gold.
Of course, gold's weak performance in 2018 was largely driven by the strong US dollar, but the US dollar has begun to signal continued weakness.
The US dollar index bullish Fund (UUP) is still significantly below the 50 day moving average, indicating that its performance is still quite weak, which means that gold bulls will continue to dominate the market in the short term.
From the perspective of gold itself, Ishare gold ETF (IAU) continues to be in the upward trend, and is significantly higher than its rising 15 day average.
Of course, under the continuous rise, the gold price has the risk of excessive rise, which may lead to a downward correction. But in general, as long as it stays above the 50 day moving average, bulls don't need to worry about it, and the decline will only be temporary.
From the above-mentioned aspects, the beginning of this year may be the golden time for bulls.