“Gold Continues its Decline After Bearish Death Cross”

The title quote was found written on a chart of gold at Bloomberg, referring to the daily chart’s cross of the 50 day moving average below the 200 day moving average.

But a “Death Cross” is more often than not a precursor to a bounce or even a significant rally when the cross happens with both moving averages trending up, which they are doing on gold. The SMA 50 is rolling upward in higher highs and higher lows (so far) and the SMA 200 has been sloping upward (although just starting to turn down now).

Gold is now getting oversold and is only broken if it makes a lower low to December.

gold

Just a little antidote to some more lazy media analysis.

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