Given the sharp $100 fall in the US gold price (to $US1280) over the last 2 weeks, we asked Jordan Elisio, Chief Economist at ABC Bullion, for his thoughts:...

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Given the sharp $100 fall in the US gold price (to $US1280) over the last 2 weeks, we asked Jordan Elisio, Chief Economist at ABC Bullion, for his thoughts: Given the momentum, a fall to $1200 is not off the cards by mid year. However, this has already been a support level a few times in the last nine months. Support at the $1200 level again would also see the chart form a triple bottom over a 12-month period. This would create a robust technical signal of a market bottom. We actually saw a similar formation on the upside, as, after it's initial run to USD $1900 per ounce, gold traced a 12-month triple top at the $1800 level between mid-2011 to mid-2012. This proved to be a strong technical signal that correctly warned of a market top. The $1200 level will therefore be very important one in coming months.


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