50-day moving average falls below 200-dma
On the face of it, today should be a better day for gold. The US dollar is down against the safe havens including the Swiss franc and yen, stocks are struggling and bonds are bid. Instead, gold is down $2 to $1266 in the sixth decline in the past seven trading days.
Technically, it's not pretty. Gold is threatening the lowest close since December and is less than $10 away from the June intraday low.
Making matters worse, the 50-day moving average fell below the 200-dma today, marking a death cross. I usually use the 55-dma but barring a radical change in gold's trajectory, a break in the 55-dma is inevitable.
It's the first fall in the 50-dma below the 200-dma since last May and the first time it's formed a death cross since November 2016, when it precipitated a 6% fall.
