“Gold futures may slump to $1,600 an ounce by the end of the year, according to technical analysis by Paul Kavanaugh at FuturePath Trading LLC.
The contract for December delivery settled below its 50-day moving average for the second straight day, signaling the metal may slide 6 percent from yesterday’s closing price of $1,701.60 on the Comex in New York, Kavanaugh, the Chicago-based director of business development, said in a telephone interview.
“The downside risks are growing, and prices have peaked for this year,” said Kavanaugh, who correctly predicted in early April that the Standard & Poor’s GSCI Spot Index of 24 raw materials would slump by the end of the second quarter. “Gold will correct further.”
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