Gold's Death Cross

Technical analysts believe that markets are not efficient and look for patterns in price charts in an effort to make abnormal returns. One technical trading tool is the "death cross" where the 50-day moving average falls below the 200-day moving average. The 50-day moving average is the average price over the past 50 days. The chart for gold prices is nearing a death cross. The last time there was a death cross in gold's price chart, gold declined about nine percent.