For the first time since Gold suffered a "death cross" in 2014, the largest 3-week inflows into gold funds since June 2009 have set up a so-called bullish "golden cross" pattern in the precious metal.
On the week, BofA's Michael Hartnett reports big precious metals inflows of $2.6bn as investors flee from stocks (equity outflows of $2.7bn).
This adds up to the largest 3-week inflows to gold ($5.8bn) since Jun’09 (Chart below) as inflows have coincided with Fed "talking-down" the US$ and rising investor fears of recession/Quantitative Failure.
This has maintained price pressure and pushed the 50-day moving-average above the 200-day moving-average, creating the so-called "Golden Cross" bullish trend pattern.
While obviously not guaranteed (2012 saw an upward-sloping 50DMA cross a upward-sloping 200DMA without trend gains), the last time a "golden cross" occurred coupled with major fund inflows was Feb 2009, which marked the start of a dramatic trend higher in the precious metal.
Charts: BofA, Bloomberg