GoldMost attention when it comes to the metals segment of the commodities market goes to gold. As one of the most popular hedges to market volatility and inflation, gold tends to perform well when investors get nervous about the future.
With the increased activity in the M&A market within the precious metals area, investors are starting to pay closer attention because it could be a leading indicator of a continued move higher.
Followers of technical analysis will often look to exchange-traded products such as the SPDR Gold Shares (GLD) for insight into the future direction of the market.
As you'll find below, the price of gold has been trading within a confined range shown by the two dotted trendlines. Active traders will likely use these guides to determine the placement of their buy and stop orders.
Furthermore, the recent crossover between the 50-day and 200-day moving average, known as the golden cross, is often used to signal the beginning of a long-term uptrend.
Given the occurrence of this popular buy sign, it wouldn't be surprising to see traders ready themselves for adding to their position in a pullback.
Source: Investopedia
https://www.investopedia.com/3-charts-t ... yptr=yahoo
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