Gold price charts: Frank Holmes on metal’s golden cross

The gold price achieved a third consecutive week of increases as the yield on the 10-year Treasury dipped below 1.3% for the first time since February, writes US Global Investors CEO and CIO Frank Holmes in a blog post late last week.

Against a backdrop of increased infections in the US from the new Delta Covid 19 variant that threatens economic growth and rising uncertainty over the next interest rate hike, gold is now flashing a golden cross. This means the 50-day moving average is trading above the 200-day moving average.

In the past, this has been a bullish indicator of gold prices. According to Holmes, gold was still trading about 12% lower from its all-time high set last summer.