Gold may have lost some of its luster, but if one highly respected technical analyst is correct, it’s about to get a lot worse. MacNeil Curry, head of global technical strategy at Bank of America Merrill Lynch, said in a note to investors, “It is time to sell gold.” He doesn’t think it’s likely the yellow metal will move above its May 2005 high of $1,315.70 per ounce and doesn’t think it’s possible bullion will break above its March 2014 high of $1,331 per ounce. Instead, he sees its downside target at $1,215.
“It does seem like a fair number,” said Richard Ross, global technical strategist at Auerbach Grayson. “When you look at the chart of gold, it’s very uninspiring.” Ross, a “Talking Numbers” contributor, sees short-term support around $1,272 per ounce from which gold could bounce a little.
However, Ross’ long-term view is that things could get a lot worse for gold. Its 100-month moving average support is around $1,000 per ounce, which is also near gold’s 50 percent Fibonacci retracement level from its 2000 lows of $264 to its 2011 highs of $1,895.
You can see the full “Talking Numbers” segment below:
Related: SPDR Gold Trust (ETF)(NYSEARCA:GLD), ETFS Gold Trust(NYSEARCA:SGOL), Barrick Gold Corporation (USA)(NYSE:ABX), Goldcorp Inc. (USA)(NYSE:GG)