IB Times reported the rise of the price of gold, aided by the rising prices of grains and energy, however the metal still remained near its one year low and prices could still drop further.
As quoted in the report:
Gold is just $40 above its one-year lows near $1,530-1,540 an ounce, and analysts said a failure to hold that support level could lead to a steep price correction.
Dennis Gartman, a veteran trader and publisher of the daily Gartman Letter, commented:
The long-term, upward-sloping trend line in gold’s favor is in jeopardy of being broken. Indeed, it has made a progression of lower lows and a steady progression of lower highs, and gold’s 200-day moving average is itself trending downward and has been since mid-May.