A year ago gold seemed to be the answer to almost every financial riddle. It was the world’s favorite safe haven and was touching new heights on the back of inflation worries and a weak dollar. Today gold is down nearly 20% from its recent peak last fall, and according to Richard Suttmeier, chief market strategist at ValuEngine.com, has entered a new 5% trading range since experiencing a ”death cross” in April.  

“For a commodity such as gold, I think it could be years before gold breaks out of its new bearish bias,” he says. “I think it’s a significant high; the bubble has popped.”  

Officially, Suttmeier is targeting a trading range from $1525 to about $1600, pointing out that “there’s an 85% chance” that gold will go back up and test the upper end. Perhaps more important is the fact that Suttmeier thinks “the upside is limited to where the death cross is ($1693),” which is why he’s closer to closing out the gold trade rather than initiating or adding to a position in it.

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Related: (NYSEARCA:GLD), (NYSEARCA:IAU), (NYSEARCA:SLV), (NYSEARCA:SLW)

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