Gold Set To Go Lower
With all of our technical indicators negative on gold, I see little reason to try to pick a bottom or "catch a falling knife". Certainly the wind has been taken out of the sails of the bulls and it's going to take a long time to get that back. We look for the price of gold to languish and be on the defensive. My downside target zone of $1,155 for gold is based on a 61.8% Fibonacci retracement as measured from the lows seen in October of 2008 and the all time highs in gold around $1,900 set back in September of 2011.