The recent price movement of gold has been extremely bearish. Despite logging twelve consecutive annual gains, the precious metal is one of the worst performing assets this year. However, with sentiment at rock-bottom levels, the worst may finally be over.
Over the course of only two days in April, gold plunged $200 to reach its lowest level since February 2011. In the process, gold posted its worst one-day percentage drop since 1980, and the largest fall in dollar terms on record. On a technical basis, gold reached its most oversold reading since at least 1975. The dismal performance was followed with a 5.4 percent loss in May. In fact, gold has now declined for seven of the past eight months.
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