Gold prices fell to 2-1/2-year low
Gold prices fell to lowest level in more than 2 1/2 years at $1,285. Bullion slid 22% this year, heading for the biggest annual drop since 1981.
Gold is now testing levels below $1,300 (50% Fibo of the advance from 2008 to 2011). Support lies at $1,265 (June 2010 high), $1,225 (November 2009 high) and $1,155 (61.8% Fibo). Standard Bank points out that some buying’s possible, though the metal price is unlikely to rise to the levels seen in April.
Analysts at Credit Suisse think that XAU/USD may slide by another $50 in the next few days and will probably drop to about $1,100 in a year. UBS says that gold may drop to $1,250 in a month. Nouriel Roubini, professor of economics and international business at New York University, has forecast a decline toward $1,000 by 2015.
Chart. Daily XAU/USD