ALERT: GOLD GOES INTO A DEATH CROSS!!!
ALERT ALERT ALERT!
Gold — which has been falling falling precipitously — has gone into a death cross, according to FT.
Technical analysts believe that when this happens it means that the price has totally broken down, and that the trap floor has opened up.
Remember, gold has been falling for essentially two reasons.
Real interest rates are on the rise, as the crisis ends. Historically, gold outperforms when real interest rates are falling or extremely low. The normalization is not helpful to gold.
Volatility is on the decline. Gold does well when people are fearful. Again, too, the fading of crises around the world is a gold killer.
Gold has been falling, and as we just mentioned, it’s about to enter a “death cross”, which is a technical analysis term that means it’s fallen hard, and people think it will fall more.
But while diagonal lines on a chart are fun, there are fundamental reasons why gold is declining.
It basically comes down to two things, that can be be expressed clearly in chart form.
Gold Dives Again In Just The Last Few Minutes! We’ve been all over the gold wreckage this morning.
We mentioned that according to technical analysts, gold has entered a “death cross.”
And we explained the fundamental reasons gold was declining.
And now here’s just a chart of gold falling more in just the last few minutes.
Long-term chart shows how far gold could fall
From Kimble Charting Solutions:
Gold finds itself at a very important test of support at (1) at the top of its falling channel. A break of this support line could bring in a new round of selling pressure for Gold and other precious metals!
The Power of the Pattern suggested to get off the “Crowded Gold Train” at $1,900 per ounce.
Multiple support points come into play at…
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