Gold futures down a fourth session in a row as ‘death cross’ forms

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Gold futures fell for a fourth session in a row on Wednesday, as a death cross pattern formed on the charts. The 50-day moving average price for most-active gold futures crossed below the 200-day moving average, pointing to a potential longer-term downtrend. “Overall, markets are optimistic about an economic recovery” as the rollout of the COVID-19 vaccine continues, David Russell, director of communications at GoldCore, told MarketWatch. “Updates on the next round of stimulus may well continue the asset-class inflation that we are currently seeing and some of this is sure to flow in to gold.” The market, however, will wait to see how the death cross plays out, he said. Technically, gold is “looking soft,” though there should be good support around the $1,755 to $1,765 level and below that, support is at $1,700, said Russell. April gold
GCJ21,
-1.40%
fell $26.20, or 1.5%, to settle at $1,772.80 an ounce, the lowest finish since late June, according to Dow Jones Market Data.

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