Gold futures closed at their lowest level in 21 months, marking a decline about 20% from its highest since August
2011 to meet the standard of a bear market.
Recent cuts forecasts gold prices continued to hurt feelings, causing investors to lose confidence in gold as a safe haven investment.
Gold for June delivery fell GCM3 -5.67% $ 63.50, or 4.1%, to settle at $ 1501.40 an ounce on the Comex division of the New York Mercantile Exchange, after dipping to a low of $ 1491.40. It fell 4.7% on the week.
"If you use the standard of a 20% drop from the peak, then it is already there," said Brien Lundin, editor of Gold Newsletter.
With speculators now hold a record short positions, the market may be ready for a short-covering rally, but the best opportunity to buy gold can not get to the bottom typical of summer in late July, he said.
Based on the most active contract, FactSet data show gold futures have not resolved this low since July 1, 2011.
As for recent declines, "give credit where credit is due - to Goldman Sachs, for a raid on gold sales masterful," said Gene Arensberg, editor of the report I have gold. Goldman Sachs cut its forecast for 2013 gold this week at $ 1,545 an ounce, compared with a previous forecast of $ 1,610.
"Without the very public call gold Goldman short the more vulnerable, there is no way gold is broken today," Arensberg said.
Recent cuts forecasts gold prices continued to hurt feelings, causing investors to lose confidence in gold as a safe haven investment.
Gold for June delivery fell GCM3 -5.67% $ 63.50, or 4.1%, to settle at $ 1501.40 an ounce on the Comex division of the New York Mercantile Exchange, after dipping to a low of $ 1491.40. It fell 4.7% on the week.
Since the solution for the most active contract, prices have fallen
by 20.5% since settlement record of $ 1888.70 an
ounce reached on August 22, 2011.
"If you use the standard of a 20% drop from the peak, then it is already there," said Brien Lundin, editor of Gold Newsletter.
With speculators now hold a record short positions, the market may be ready for a short-covering rally, but the best opportunity to buy gold can not get to the bottom typical of summer in late July, he said.
Based on the most active contract, FactSet data show gold futures have not resolved this low since July 1, 2011.
As for recent declines, "give credit where credit is due - to Goldman Sachs, for a raid on gold sales masterful," said Gene Arensberg, editor of the report I have gold. Goldman Sachs cut its forecast for 2013 gold this week at $ 1,545 an ounce, compared with a previous forecast of $ 1,610.
"Without the very public call gold Goldman short the more vulnerable, there is no way gold is broken today," Arensberg said.
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