Spot Gold fell by more than 14 % to $1559 for this month, as investors look safe havens which is cash and the dollar. A debt crisis in the euro could affect global economy and hit commodity markets. Some analysts have said the risks of gold being in overbought area, and having gone up for the past three years.
I was having a difficult time tried to measure how high for the gold because there were no history highs. But the bottom line was there would be a big correction for the gold. Now let's try to calculate how low the gold could fall.
If we calculate based on the uptrend line, the support level will be at 1477-1480. If we measure based on Fibonacci Retracement, it will touch at least 1450 and the 50% correction will be around 1300. As Usually, back to crisis, people prefer cash first to any investments.