The price of gold is taking a road that some analysts are calling of no return. After twelve years it could start a downward cycle. What always happens when a clear trend is starting to spread news that you do not know for sure?
What is certain is that George Soros has liquidated his position in the yellow metal, as well as another hedge fund manager, Louis Moore Bacon. What worries analysts is that gold on the charts you can see the so called “death cross“: the moving average of prices over the past 50 days is below that of the last two hundred. This figure is often a prelude to a long period of declines. According to some analysts the price of gold in recent years has shown Quaranti twenty crosses of death but on average the month following the prices of the yellow metal rose.
Or perhaps more simply, investors are left behind the fear of the collapse of the Eurozone or the Fiscal Cliff and have turned to other assets that investors consider potentially more profitable such as equities. Soon, however, it seems that gold will not run like it did in the past.