Maybe not today, no one knows without volume figures for physical, but over the course of the rest of this year gold is going lower. It is entirely within the realm of possibility that it drops $500/oz by this time next year, on top of the $550 decline we've seen since that Sept. 2011 $1923, now fading in the rear-view mirror.
From MoneyWatch:
Gold is trading within a whisker of a multi-year price lows and threatens to dent already-bruised investor sentiment toward the metal and weigh heavily upon producer margins.
Spot gold Wednesday traded 0.7% higher on the day at $1,370.80 a troy ounce, but Tuesday saw prices slide to $1,361.18 an ounce, only $45 shy of its two year low of $1,321.50 an ounce, hit mid-April when the metal posted its largest single-day drop since the early 1980s on a cocktail of negative price drivers.
Should spot gold breach this level, it will be changing hands at prices not seen since January 2011....MOREHere's a very smart comment on tests of support:
...Meanwhile, physical gold buyers who picked gold up from its April low may not now be in the position to do this to the same extent should the price fall again....
