Gold sold off dramatically late last week, breaking through the 50-day moving average on Thursday (3/12) and testing support at the 200-day moving average on Friday (3/13). Gold prices closed the week at $1,516.70 per ounce (see the following chart). Gold Continuous Contract—Daily (50- and 200-Day Moving Averages) Source: StockCharts.com Many analysts believe last week’s drop in gold stemmed from the same catalyst that caused a decline two Fridays ago: investors selling assets that had been performing well to cover losses in the equity markets. Fox Business reports, “‘Margin calls and losses in other markets are driving investors to search for cash, and gold happens to be the liquid position they are choosing to cash out on,’ wrote Christopher Louney, commodity strategist at RBC Capital Markets. … “‘Gold’s role as a “perceived safe haven” is largely what got us here, and despite these sharper moves lower, we do not think it represents the end of the risk-off narrative for gold,’ Louney wrote. “He says gold prices are ‘likely to average at or even above’ his team’s high scenario of $1,612 an ounce for the first half of 2020.” Rick Andrews is president of Avant Capital Management.