Gold's technical charts over the last three months show that a number of possible support levels have come and gone and there has not been much of a fight by traders or investors to arrest this fall. Gold bulls must be asking themselves when this onslaught will end.
As with so many asset classes at the moment, comments from the US Federal Reserve have gone some way to affecting gold’s performance, and the fact that the Fed feels the recovery is well enough underway to start talking about a reduction of the $85 billion monthly QE policy will have negated many traders’ fears and desire to seek safe-haven investments.
Part of the problem gold has faced is the compounding issues that have arisen from so many Exchange Traded Funds, which have needed to sell some of their physical gold held due to the underlying price dropping.
Gold has always been an investment that has created polarised opinion and those that are bullish tend to be long-term holders. The question is where and when will fresh investors decide that the price has fallen enough to warrant attention. At the moment it still feels like there is more to come.