Golden cross forms in gold’s chart as precious metal rises to around a 3-week high amid drop in Treasury yields

Gold futures rose Tuesday, settling near a three-week high amid reports that buying demand for bullion was gathering steam particularly among central banks. A drop in yields for government debt
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as prices climbed, also was buoying gold contracts. The upward trend for the precious metal, in fact, was sufficient to help it crystalize a longer-term bullish chart pattern known as a golden cross. August gold
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finished up $10.90, or 0.6%, at $1,794.20 an ounce, but had reached as high as $1,815.70 intraday based on the most-active contract. Tuesday’s gain was sufficient to propel the precious metal toward a golden cross, which occurs when the 50-day moving average crosses above the 200-DMA, widely viewed as a dividing line between longer-term uptrends and downtrends. The 50-day moving average for gold stood at $1,832.39 an ounce, with the 200-day at $1,832.04, according to FactSet data on Tuesday.