Hedge funds slash bullish wagers on gold over Trump election win
Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
The ‘death cross’ is everyone’s favourite headline right now after gold crashed below $1,600.
Spot gold is currently at US$1,582/oz, having lost 1.41% over the last 24 hours.
The ‘death cross’ sounds great, but it is also a technical measure: it’s when an asset’s 50-day moving average moves below its 200-day moving average.
Notice in the chart of the SPDR Gold Trust ETF (NYSEARCA:GLD). The green line, which is the 50-day moving average, is crashing into the red line, the 200-day moving average.
In sum the short-term support level is moving below the long-term support level, a Rubicon that gold is crossing which will make it difficult to regain momentum.
