Gold has had 12 other golden crosses take place since 1976, according to market-research firm Bespoke Investment Group. After a cross occurs, gold has averaged a 1% decline over the next week. One month later, the precious metal has averaged a 2.5% drop.
Gold’s most recent golden cross occurred in February 2009. The precious metal rose 3.4% one week later, but it registered a 5.1% loss in the course of a month and a 3.5% decline throughout a three-month timeframe.
In other words, a short-term pullback following gold’s latest rally wouldn’t come as a total shock.
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Deutsche Bank said gold prices would top $2,000 per ounce in the first half of 2013.
Bank of America Merrill Lynch: Gold Prices Could Reach $2,400 in 2014.
Current investment in gold: long $GLD