Gold could sink to US$1,000 if support lines breached: analysts

[LONDON] Gold's slide to eight-month lows over the last week has brought it within sight of a cluster of chart support lines near its 2013 lows, a breach of which could set up a slide back to US$1,000 an ounce.

Analysts who study past price patterns for clues on the next direction of trade say a breach of support around the metal's June 2013 low of US$1,180 an ounce could see it fall back towards triple figures as soon as early next year.

Around the June low, lines of support run all the way down to US$1,150, the 61.8 per cent Fibonacci retracement of gold's rally from its 2008 lows to its 2011 record high at US$1,920.30.