CHART OF THE DAY: Gold Just Broke Through A Technical Level It Hasn't Seen Since 2001

You’ll hear adherents of technical analysis talk a lot about the 200-day moving average.

When the price of a financial asset – like gold, for example – falls below its average price over the last 200 days, it indicates increasingly bearish sentiment toward the asset.

The gold price actually dropped below its 200-day moving average back in early February, when it was trading around $1667 an ounce.

Today, as Stifel Nicolaus strategist Dave Lutz points out, gold has also broken below its 200-week moving average, which currently hovers around $1435. The price of gold hasn’t been below its 200-week moving average since 2001.

It’s not necessarily a critical level that a lot of traders are watching, but it does illustrate just how bearish sentiment toward the shiny yellow metal has become in recent days.

gold 200 week moving average

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