Gold fell 3.1% this week in the second consecutive week of declines. The pain started shortly before the FOMC decision and has continued since.
Gold stabilized on Friday, gaining $2 but technically, it was an awful week:
- The uptrend since the beginning of 2014 broke
- The 38.2% retracement broke
- $1300 broke
- The 55-dma broke
- The 200-dma broke
gold daily
The good news on the technical side is a golden cross formed when the 55dma crossed above the 200dma. But more bad news is on the weekly chart with the 100-week moving average falling below the 200-wma.
The one thing gold has going for it is the calendar. There have been sell-offs at quarter-end for four consecutive quarters. Profit taking may have added to the declines this time with prices gaining as much as 16% through mid-March (still up 7.6% QTD).
