Commerzbank Calls For Drop To $1,074

For technical reasons, gold may fall to that level according to Commerzbank analyst Axel Rudolph:

“We expect to see further weakness this week, provided that last week’s $1,134 high point caps,” Axel Rudolph, a technical strategist at Commerzbank in London, said today in a report. “We remain medium-term neutral as long as the gold price stays below the three-month resistance line at $1,128.90 and the 50 percent Fibonacci level at $1,135.50, but above the $1,073.85 January low point.”

The reason given for their gloomy outlook is that gold failed to rise above the 50% retracement level between December 2nd's high and February's low.