Dividend Chaser on Is it time to buy Gold?

(From Article)

Gold prices have fallen lower for the past 12 months. 

Whilst many analysts forecasted higher prices in 2013, the trend has clearly taken many investors and traders by surprise with its dramatic sharp fall. 

However, the commodity did present clear warning signals of a decline.

Technically, we saw gold struggling for four weeks at our original forecast high of US$1,770, which then led to the start of a decline. 

Ultimately, the metal started to pick up speed and many day traders and options traders had been hit quite hard trying to pick up gold at lower prices.

Since the high of US$1,798 in May 2012, we have seen gold prices lose more than 23 percent and with the metal currently trading at US$1,377, one would assume that this could be a bargain.

Temptation to buy with falling prices has caused much pain for those who have not been patient to wait for a bottom formation.

Gold Weekly

As seen on the chart above, the current trend remains bearish as indicated by the red bars. 

Having reached our first support target of US$1,550, gold continues to trade lower. 

Momentum remains on the downside towards US$1,300 as a potential support target unless we see gold trade above US$1,450 for the near term. 

With this in mind gold remains weak and does not represent a buying opportunity until we see strength come in over the next few weeks.