The impact on gold has been made worse by an overnight report that India’s imports of the yellow metal are likely to fall by 30% after the government imposed new taxes in an effort to curb the country’s trade deficit.
The next long-term downside target for gold is in the range of $1,200 to $1,220 an ounce, with technical resistance at around $1,323 as the price drops. And it could get even uglier once gold breaks below $1,200.
The SPDR Gold Shares trust (NYSEMKT: GLD) is down about 3.7% this morning, at $125.85 in a 52-week range of $124.86 to $174.07. The low was posted early this morning.
The Market Vectors Gold Miners ETF (NYSEMKT: GDX) is down about 4.6%, at $25.28 after posting a new low of $25.00 earlier. The 52-week high is $55.25.