Gold charts suggest that the decline may not be over yet

Gold market update for Wednesday, May 1. After gold’s 13% drop in two days last month, bears have been licking their chops and claiming the bull market is over. While the drop was steep and quick though, many of the world’s leading gold bulls like Jim Rogers and Marc Faber comment that corrections are a normal part of markets. The fundamentals of gold are still there, so the price dip represents a tremendous opportunity to buy. Despite being off its lows though, technical charts indicate that there could be another decline lower in the weeks and months ahead. In one chart, we see how gold could go to $1100 and still be in an up-trend. Other charts though indicate that the market was way over-sold in last month’s drop. However, data on the volume of trading indicate that another decline may occur. Read more…