On Monday, gold price fell by more than 2% and correction began only at the support level of $1460 per ounce. Most likely, the downtrend will continue. In this case, next strong support level will be around $1435. Depending on the nature of movement, the current correction may lower the quotes even below the psychological mark of $1400. However, in this case the decline will be temporary. Gold price will provide excellent entry points for long-term purchases in the coming weeks.
Analysts at Macquarie Bank in their report believe that gold investors broke out of the real situation. The total volume of open positions in American gold futures was only 5% of the historical record. Thus, the recent growth was mostly caused by speculative factors. It means that the current correction can turn out to be quite strong, but short-term, as it always happens when speculative capital flees.