Market Nuggets: Gold Could See Further Weakness – United-ICAP

Monday October 15, 2012 11:22 AM

Gold is falling and further weakness may be ahead, based on technical charts, says Walter Zimmerman Jr., chief technical analyst at United-ICAP. “Gold bulls must be dismayed here. We doubt they expected serious technical weakness to follow from a big, fat QE3 (third quantitative easing). Gold continued to give massive, bearish RSI (relative strength index) divergence from its most bullish extreme since the $1804.40 peak back in November 2011. The $1,796 was our ideal resistance. From here we target a drop to $1,550 minimum, with $1400 the next step down from there,” he says.

By Debbie Carlson of Kitco News dcarlson@kitco.com