Market Extra: ‘Death cross’ appears in gold for first time since 2016, even as stock market slumps

A bearish chart pattern has materialized in gold trading, indicating that the embattled precious metal is likely to extend a recent downtrend that has dragged it to its lowest level in 2018, even as signs of global uncertainty have intensified.

Most recently, August gold GCQ8, -0.22% was trading $1.30, or 0.1%, lower at $1,269.40 an ounce, trading near the lowest levels of 2018. It shaved off 0.6% for last week despite an uptick during Friday’s subdued session and is tracking a 2.6% June drop.

Read:Here’s what may be eroding gold’s traditional haven status

The current downdraft has resulted in the 50-day moving average for gold prices, currently at $1,306.26 an ounce, falling below its longer-term 200-day moving average at $1,307.20, according to FactSet data.

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