Over the last several trading days, the bottom has fallen out of gold. In less than three weeks the price of gold has dropped by $100 for a decline of more than 5%. Just today, the commodity saw a ’death cross’ of its 50 and 200-day moving averages. The relatively uncommon death cross is considered a negative technical pattern where a downward sloping 50-DMA crosses below a downward sloping 200-DMA. Death crosses are so rare for gold, in fact, that the last time it happened with its 50 and 200-DMA was back in 1998!
Going all the way back to 1975, there have only been eight prior death crosses for gold. Yesterday, we sent out a report to Bespoke Premium clients, highlighting both the short and intermediate term performance of gold following prior death crosses for the commodity. Clients that wish to view the report can click on the link below. If you are not currently a Bespoke Premium client, sign up for our free no obligation trial today (click the free trial button below).