by Jan Harvey:
Gold's slide this week to a six-month low has brought it in sight of $1,525 an ounce, a critical support price which, once breached, could fatally reverse its 12-year rise.
The metal has bounced off that level three times since falling from record highs in September 2011. Since then, prices have traded in a broad sideways channel, with $1,800 an ounce capping gains and $1,525 lending support.
"That's the big one, as far as the longer-term technical picture is concerned," independent technical consultant Cliff Green said. "Only a break below there changes things. Until that breaks, I would still consider the long-term uptrend to be firmly intact, and that this is a consolidation within it."
"A break beneath $1,525 changes everything. It creates a big top and threatens that longer-term bull cycle completely, probably turning it into a new bear cycle. It's critical."
Gold prices fell to a six-month low of $1,588.29 an ounce in early afternoon trade in Europe on Wednesday, after breaking $1,625-1,630, its previous 2013 low, late last week. ...