Ever since those FOMC minutes from the April meeting came out back on 5/18, gold has been in an absolute tailspin. As shown in the chart below, prices have now declined in every session since the release of the minutes. They’re now testing their March lows and are on pace for their lowest close since early February.
With gold on pace for its ninth straight day of declines, it is on pace for its longest streak of daily declines since last July and only the fifth such streak since 1980. The table below lists each of the prior streaks where gold was down at least nine trading sessions in a row and shows the metal’s performance over the following day, week, month and quarter. As shown in the table, of the four prior streaks, three went on to at least a tenth day with one (1996) stretching as long as thirteen trading days. Over the course of the current nine days of declines, gold is down 5.35%, which would rank as the second worst behind the 10.94% decline in the nine-day streak back in September 2008. Following that streak, gold saw quite the snap back rally, but following the other three, the returns were nothing to get overly excited about.