Gold, once the darling in the investment world, is losing its luster, and exchange traded funds that track the precious metal could continue to weaken, with large banks anticipating further declines in the bullion market.
After touching $1,251 per ounce Wednesday, Bank of America Merrill Lynch was stopped out of their long positions, reports Myra P. Saefong for MarketWatch.
MacNeil Curry, technical strategist at BofA Merrill Lynch, said that its previous bullish view on gold has been “proven incorrect” and that there is greater weakness than anticipated.
“While allowing for a near-term consolidation, the $1,270 pivot should limit the topside before the yellow metal declines towards the June lows at $1,180,” Curry said in the MarketWatch article.
Curry argues that bears will have to see a “break of $1,155/$1,087 support to confirm a long-term top and secular turn in trend from bullish to bearish.”
COMEX gold futures were down 1.0% Thursday, trading around $1,245.1 per ounce.