KITCO NEWS - As gold prices slightly recover from Monday’s drop to a 5-year low, one technical analyst says that although the bottom is not yet formed, it may be closer than people think. 'I don’t think we’ve found a bottom,' Jim Wyckoff, Kitco’s senior technical analyst, told Kitco News. On a longer term basis, however, he said that gold and silver 'will bottom out.' In overnight trading, gold prices hit $1,080 an ounce, before bouncing back above $1,100, due to a selloff in Asian markets. In Wyckoff's Kitco morning report, he said that this move 'suggests a major player was dumping gold.' He added that 'gold’s slide started Friday, in which prices on that day slipped to a five-year low and in the process produced serious near-term and longer-term technical damage, which suggested at that time more selling pressure was coming in the days, weeks or even months ahead.' On a technical basis, Wyckoff said that a corrective bounce in gold could happen this week. He added that the key psychological level of $1,000/oz gold may be in the cards for the metal, at which point gold may find its bottom. 'If history is any clue, I think we’re still going to see more downside price pressure,' Wyckoff added. Looking at silver, which was able to hold on despite gold’s fall, Wyckoff said the metal remains in a bear market.
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