A death cross occurs when the 50-day moving average crosses below the 200-day moving average.
In addition we can observe the weekly EMA ribbon directly on support:
Occasionally this is a setup, but if price falls below the ema ribbon that is considered very bearish - particularly on a weekly time frame.
Additional Clarity offered on the death cross here:
This death cross indicates, according to technical analysis, that the short term trend (50day) has fallen under the long term trend (200day).
Treasury Yields are indicating the dollar may rise higher, and as those of us who have been observing the increase in the US Dollar see - a bullish DXY is a bearish signal typically for gold.
The 10Y hit its highest level today since Feb of 2020 (which was pre-covid mania)
This is because owning bonds offering a yield is preferable vs a commodity that does not offer yield. The Yield in Treasuries is direct competition with gold - along now with the new powerhouse on the block Bitcoin.
Keep in mind as well that an ounce of gold now costs .03~ bitcoin! Chart will be provided below.
It is also worth stating that Bitcoins market cap is now 975.2B. If we exceed 1.5T Bitcoins market cap will have surpassed silver which one could then assume the next runup will be targeting superseding Golds dominance.
The other issue gold has to contend with is optimism from the broader market that as the nation opens back up, and consumers flush with cash we may see, and hopefully so, a broad economic recovery. The irony, and a strength for gold though is that the formula for inflation is M2*V=inflation. We all know that M2 has gone significantly higher, unprecedently higher. Velocity has been more than muted, it has been crushed. I would argue (and may get some counterpoints shooting me down, and I welcome the debate) that as the nation opens back up, we will see an increase in spending and activity and dare I say traveling and vacationing, home improvements, acquisitions of new homes to take advantage of low rates - which will heat up the economy & increase velocity. If velocity increases enough we could see a nice pop in inflation - not calling for hyper inflation, but even a conservative pop could work wonders for gold.
There is a lot to weigh out when one considers longing gold, but for now gold appears to be in a position where the gold bears have taken over, and the gold bugs are fighting for support.
If you enjoy this chart please be sure to like it! If you see things differently I respect your opinion and would love to learn from it! Please be sure to comment and tell me why I may be wrong.
And as always friends I wish you nothing but good fortunes and great success!
Thanks for writing this report about gold and what you're seeing in the market. We've featured it in Editors' Picks.
ZenMode
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@TradingView, Thank you so much! TradingView is the best community ever!!
AlanSantana
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When the death cross happens, there tends to be a bounce (move up) before the drop.
Watch out.
ColdGoAt
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@alanmasters, OP EX is Friday, movement might not happen till next week
ZenMode
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@alanmasters, good call! And thanks for your insight!
womasters
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@alanmasters, not necessarily
wkeithl
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@alanmasters,
You were spot on. Exactly what happened.
Keith
gleefulCamel34237
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Major support at 1767. We are hanging by a thread here. It's so dramatic. I almost can't watch...
Meanwhile I just went shopping at Trader Joe's and I'm seeing that phenomenon where my favorite products have suddenly been repackaged to the smaller, sized-down version and all the portions are smaller but I'm paying the same price. So, if a company goes through the trouble to repackage their stuff the inflation feels pretty real already to me, anyway. Doesn't this seem like a good time to be buying gold?
TehkarN
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@gleefulCamel34237, im asking myself, with all this manipulation of hard asset markets, is it EVER good to buy on paper? but as the price drops, rather buy real gold I guess. I find the real value being heavily pressured, I followed gold a long long time climbing from early 1000s, and it all made sense till 2k for me, I think we should stay well over 2k, I saw many of the biggest investors of the planet call as high as 5k gold "soon" and so on the whole time. Why are we falling in value when everything is going up? This makes me crazy, we just have to respect what the marketmakers want not act or use our money for reality, makes me sick.