Gold price declines as traders await key US economic data
Gold erased gains as traders geared up for US economic data that may help them assess the outlook for interest rates in the year ahead.
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.
