After a record setting price in August 2011, gold saw its big percentage drop in 13 years in 2013. However, 2014 is shaping up to be a much different story. On February 11, gold was trading above its 200-day moving average (DMA).
It’s pretty interesting because gold has only traded below its 200-day moving average for more then a year, only four other times.
You can see the price trends for yourself on our historical gold price charts.
A “moving average” is the average price of a commodity over a set amount of time. It can be calculated by taking the sum of all of the past daily closing prices and dividing the result by the number of prices included in the calculation. Since gold is trading for a higher price than its 200-DMA, that means that the average price of gold for the past 200 days is lower than what its trading at presently. Security traders and financial analysts use moving averages to predict pricing trends. And, since gold is beating its 200-DMA right now, many analysts are predicting that gold prices are going to make a big comeback!
Since the price of gold has increased by about 10% since the beginning of this year, a comeback seems entirely plausible. Download our precious metal prices app (available for IOS and Android) to keep an eye on the very latest prices and set alerts so you can find the right time to sell.