Gold has been mired in a slump for the past seven months, as the price has fallen from the $1,800 level to a low below $1,325 in April.

This price slump has created several interesting and historic developments.

First, when the price dipped to its low last month, the price of gold dipped below its 50-month moving average for the first time since December 2001.

Secondly, the 10-month Relative Strength Index (an overbought/oversold indicator) shows that gold is the most oversold that it has been since March 2001.

The third item of note is that the Commitment of Traders report from last Friday shows large speculators are long 89,423 contracts.

The last time this group was long less than 100,000 contracts was back on Dec. 9, 2008.

In 2008, large speculators were long less than 100,000 contracts from October through the aforementioned date in December.

This time period was similar to the current one where gold prices had fallen from $1,033 an ounce all the way down to $681 for a 34 percent loss.

If we go back to the high of $1,923 in September 2011, gold prices dropped over 31 percent to the low in April.

What is interesting is that after gold hit its low of $681 in October 2008, the price doubled by October 2010.

Could we be looking at a similar move this time around? Only time will answer that question.