Gold May Test 2013 Low on Head and Shoulders: Technical Analysis
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Gold futures may test this year’s low in coming weeks as prices on charts form a head-and-shoulders pattern that signals more selling, according to Hiroyuki Kikukawa of Nihon Unicom Inc.
The most-active contract on the Comex in New York fell to $1,276.90 an ounce on Oct. 2, testing support at the August low of $1,271.80 and the upward trend that began in July, said Kikukawa, the general manager of research at the Tokyo-based brokerage. Futures traded at $1,316.60 at 8:40 a.m. in Tokyo.