Gold

Gold: Reuters Technicals notes gold has accelerated losses since June 20 and on June 26 marked the lowest level since August 2010. Investors who had purchased it as a hedge against higher inflation have been squeezed out aggressively this year. On a long-term basis, gold broke below US$1,281/Oz, the 38.2% Fibonacci of the uptrend between Mar 2001 and Sep 2011. In the short-term, the sliding gold faces downside targets at US$1,180/Oz from the 1.236% Fibonacci projection of the downtrend between Sep 2012 and Apr 2013, and then at US$1,093/Oz (1.382%). Only a close above US$1,281/Oz would signal that the oversold gold formed at least a short-term bottom.