Gold plunges on break of the Nov/Feb lows

Technical Analysis

Breakdown in gold

Gold is crumbling, falling sharply for the second day and breaking the Nov/Feb double bottom at $1765.

The break has sparked a heavy wave of selling and a $38 decline to $1731, which is the lowest since late June.

There isn’t much standing in the way of a fall to $1700 or the June low of $1680.

The 100-day moving average will also fall below the 200-dma tomorrow, creating a death cross. In addition, seasonals are now negative for awhile.

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