Expect gold prices to fall more. Gold is in a death cross. It’s 50 day moving average has broken below the slower 200 day moving average. The slope of both the moving averages should point down which was the case this Friday.You can read the MarketWatch Article on Gold’s Death Cross and what it means.
Bloomberg is reporting that this death cross is a signal that gold prices can slump to $1,200 per ounce.This death cross is an indication that gold prices will stay under pressure for quite sometime. Now this is something interesting, Matthew Boesler in an article on the Business Insider is saying that this death cross is infact a bullish signal for gold. You must read this article as it shows in great detail using data for many years that the death cross is a false signal for gold.