 "Gold bears say charts point down toward a 3-year low")
Spot gold's sharp tumble this week sent a bearish signal to many technical analysts, suggesting the precious metal could slide further toward three-year lows.
The bears pointed to bullion's 2.65 per cent slide on Wednesday off of an exact double top at its one-month high. They said this indicated that impetus to push above the $1,347.69 per ounce high had run out. Despite the bearish consensus, at least one analyst held out hope that gold could rebound to the highs of around $1,700 an ounce early this year.
Gold's failure to scale the $1,350 peak of June 20, a day when gold dropped almost six per cent, brought the bearish forecasts out. Chartists said they see targets down to $1,295, $1,265 and possibly lows last seen three years ago.
"Near-term topping signals against the $1,350 area in gold point to a move back in range toward targets in the $1,260 area," Barclays technicians wrote in their daily Technical Research report.
The bears pointed to bullion's 2.65 per cent slide on Wednesday off of an exact double top at its one-month high. They said this indicated that impetus to push above the $1,347.69 per ounce high had run out. Despite the bearish consensus, at least one analyst held out hope that gold could rebound to the highs of around $1,700 an ounce early this year.
Gold's failure to scale the $1,350 peak of June 20, a day when gold dropped almost six per cent, brought the bearish forecasts out. Chartists said they see targets down to $1,295, $1,265 and possibly lows last seen three years ago.
"Near-term topping signals against the $1,350 area in gold point to a move back in range toward targets in the $1,260 area," Barclays technicians wrote in their daily Technical Research report.