by Myra P. Saefong, Market Watch:
Talk of further declines for gold intensified Monday as analysts pointed out that moving price averages hit a so-called “death cross” last week.
The 50-day moving average for gold GCQ4 -0.19% has now crossed below the slower-moving 200-day average, creating a “death cross,” said Fawad Razaqzada, technical analyst at Forex.com, in a note Monday.
“This bearish technical development last occurred in mid-February of last year when the metal was trading at around $1,600,” he said. “Although it did not immediately lead to a selloff then, as gold had already fallen sharply in advance to the crossover, prices started to move lower once again a couple of months down the line.”
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