Hi Lee,

Actually, I am referring to the simple moving average for both the daily and weekly charts, not the exponential ones. I appreciate that many traders prefer them over the simple versions as their design makes them more sensitive to recent activity, thus providing quicker/earlier signal changes on the charts. From that trading perspective, I do consider them to have key advantages over their more basic cousins and thus track both sets when focusing in on a particular stock, sector, or commodity.

But the main reason I put the simple moving averages on most of my charts here is because they are the key ones followed by the masses and the mainstream financial press (CNBC, etc.). In that sence, they are a better indication of broader market sentiment towards the health of any particular sector, stock, commmodity or index. When CNBC announces that the Dow has broken above or below the 200dma for example, it gets serious attention and carries a lot of weight. How the public reacts to such an 'event', and the sentiment that is created because of it, is of prime importance. In Gold's case, the financial media is all over the 'fact' that Gold broke below its 200dma last week...the public's reaction to such 'news' (technical events) can provide essential information going forward, especially when panic sell-offs, false breaks and capitulations result from it.

Anyways, I'm getting a bit too wordy here me thinks, lol, but I think you probably get the general idea. Interesting to note that Gold did close just below the 200dma on the continuous chart today, but is already above that level on asian trading this evening as you noted on your last post. Important few sessions ahead here, not just for Gold, but the broader markets as a whole...