Gold Makes Another Low

As reported by MarketWatch, gold dropped yet again yesterday and last night as the U.S. dollar continues to recover from its slide. One of the comments from the story looks short-term bearish:

"For the first time in past three months, gold has had a successive lower close for three consecutive days," said Chintan Karnani, an analyst at Insignia Consultants in New Delhi.

"This is a short-term bearish signal for gold," he said, adding that if the trend continues into Friday, the market may see prices fall to $1,071 in the near term.

Gold prices need to trade over $1,108 to be in what he calls a "bullish zone."

Still, there will be "value-based investing at lower prices," he said.

Spot gold got as low as US$1125/oz late yesterday afternoon; currently, it's trading at $1145.00, about where it was the same time yesterday.