Gold on Pace to End Longest Streak Above 200-DMA...Ever
Wednesday, December 14, 2011 at 10:21AM As the dollar has been breaking out, the price of gold has been breaking down. Today, gold dipped below its 200-day moving average (DMA) today for the first time since January 2009. If gold closes below its 200-DMA it will mark the end of the longest ever streak (732 trading days) of consecutive closes above its 200-DMA. Over the course of that streak, gold rallied nearly 125% to its highs earlier this year, and has since declined 16%. Even after the recent decline, though, gold is still up 88% since the last time it closed below its 200-DMA.
Earlier today we sent out a report highlighting how gold performed following prior streaks of a year or more where the commodity closed above its 200-DMA. To view that report click on the link below. If you are not yet a Bespoke Premium client and wish to subscribe, sign up today.
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