While gold, as represented by the EFT GLD, is up more than 10% for the year, the precious metal’s ride has been bumpy. During its advance in 2017, GLD saw a 5.3% correction in March and a 5.9% retreat in May.
However, gold investors were encouraged this spring to see a bullish technical move, the “golden cross,” where the 50-day moving average passes above the 200-day moving average. Gold’s price continued to decline in the days immediately after this event but soon rebounded with a 5% move higher off May’s lows.
Given the continued turbulence in U.S. politics, several ongoing threats from various hotspots abroad, and headline-grabbing terrorist acts in developed countries, it would not be surprising to see the “golden cross” play out in a new uptrend for gold.