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Technicians See Gold Melting Down to $1,200 an Ounce:

NEW YORK (TheStreet) -- The gold charts are not glittering for traders. In fact, most technicians on say the shine is off the yellow metal and prices will fall further.

Traders watching the SPDR Gold ETF  (GLD) see the price-per-ounce dropping another $10 or more in the near future now that gold has broken through a key support level of $1,300-per-ounce. Gold traded at $1,267.10-per-ounce this afternoon.

$GLD On a sell now whilst its under 123.46 target 116 #elliottwave ? (@Wavepatterntraders) May. 27 at 01:17 PM

#Gold is breaking below its 6-week symmetrical triangle pattern today - bears may now look to target the 3.5-month lows at $1268 next $GLD ? Matt Weller (@MWellerFX) May. 27 at 08:37 AM

The gold exchange-traded fund has fallen 6.5% from a six month high of $133.10. Sentiment on the ETF is 49% bearish, according to

$GLD I guess no more support for gold one way only down down down ? Al (@Manonsf) May. 27 at 08:06 AM

Fundamental traders also see few positives on the horizon for gold. Better-than-anticipated U.S. economic data has decreased demand for the safe-haven asset. The Conference Board said today that U.S. consumer confidence improved in May. The index tracking consumers' feelings about the economy, personal consumption, and future income expectations rose to 83 from 81.7. It had dropped in April. U.S. factory orders for durable goods also unexpectedly rose in April. Economists had expected a drop.

Drop in $gld has nothin to do with anything other than being overpriced and overbought period. No conspiracy just to high of a price. $gdx ? thebearishbull (@thebearishbull) May. 27 at 01:39 PM

Investors were also surprisingly bearish on the Chinese government's moves to have more influence in the gold trade. China's central bank has approved The Shanghai Gold Exchange to launch a global gold trading platform, according to the London Times. The global platform will have spot physical contracts for gold and other precious metals.

$ANV $GC_F $GLD China seeks 2B much bigger player in the gold market, have bigger say on gold price PreMKT Bulltrap ? kim smit (@kims) May. 27 at 12:43 PM

Of course, there are investors who insist that gold has hit a bottom. Though the U.S. Federal Reserve sees little inflation from its accommodative monetary policy, these traders argue that it is only a matter of time before prices rise, eroding the value of cash and fueling more demand for gold.

$GLD Watch fed will crash the market big time and gold will go up big ? Al (@Manonsf) May. 27 at 02:16 PM

But there was little sign of a coming gold rally Tuesday. And most traders looking into the chart tea leaves saw a dull future for gold futures, gold miners, and gold etfs. Some technicians even predicted that bears could drive gold to retest a $1,200-per-ounce support level.

It looks like Gold bears want the metal to retest its important $1185-$1200 support. $GC_F $GLD ? Vconomics (@Vconomics) May. 27 at 02:26 PM

At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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