Gold prices death cross

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Gold Prices: Making Sense of the "Death Cross"

Gold prices have tumbled 16% since last summer and, more recently, suffered a "death cross" leading many investors to question whether or not gold's bubble has popped.

If you're not familiar with the term, a death cross is what it's called when the 50-day moving average of the price of a traded instrument - in this case gold - crosses the 200-day moving average from above.

I disagree.

I think that the 16% drop since last September is simply based on a corresponding decrease in speculative interest at a time when the dollar has become the best looking horse in the glue factory.

Traders are simply moving currencies as the euro comes apart.

This isn't hard to understand when you consider that the dollar and gold have an inverse relationship. If one rises, the other traditionally falls.

I don't expect that to last much longer.

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