NEW YORK (TheStreet) -- The gold charts are not glittering for traders. In fact, most technicians on StockTwits.com 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.
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 StockTwits.com.
$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.
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.
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.