February 22,2013
But pain might continue awhile after this week's death cross, he tells CNBC
"We may see even lower prices down toward $1,415 in the coming months," SignalPro strategist Sandy Jadeja tells CNBC in a Feb. 22 interview in which he analyzes gold's "death cross," when its 50-day moving average fell below its 200-day moving average.
"There's two ways of looking at this: Are you a short-term trader or a long-term trader? Now we've talked about gold -- the golden cross [that] actually occurred back September last year and we saw pretty much a selloff from there. But something really interesting happened back in April 2002 and also 2003. We saw gold prices on a weekly basis create a golden cross, and since then, gold has risen by 530%, and so on a longer-term basis, gold is still bullish. So what we're seeing is this divergence taking place: On the longer-term gold is still bullish, but on a short term we're seeing this pullback."
