How low will gold go before the bounce? – by Ernest Hoffman (Kitco News – November 15, 2024)

https://www.kitco.com/

(Kitco News) – As precious metals investors watched gold prices slide from a high of $2,800 per ounce only two weeks ago to just over $2,500 per ounce this week, analysts and traders have been working overtime to contextualize the magnitude of the move, and to try to determine the likely near-term floor for the yellow metal.

And while gold holders are reassured to hear that all the medium and long-term tailwinds behind bullion remain in effect, they remain anxious as they watch gold prices decline further day after day. “This week alone, gold prices have fallen nearly 5%, marking the steepest weekly decline in almost three years,” noted Alex Kuptsikevich, senior market analyst at FxPro.

“From its peak, the metal has now lost over $250 or approximately 9%, making this the most sustained downturn since the start of the month.” He pointed out, however, that despite this sharp pullback, “gold’s recent rally since last October means that even a drop to $2,400 would represent only a correction, bringing the price back to the 200-day moving average.

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