Today MCX Gold is basically back to breakeven for the year, and analysts say the precious metal looks set to go even lower.June gold futures plummeted USD 35 an ounce Tuesday to end the session at USD 1604.50, after briefly dipping to USD 1595.50, the lowest settlement and intraday price for gold since Jan. 3. More information about Free mcx gold visit my site

MCX Gold has plunged about USD 120 from this year`s high near USD 1716 an ounce in early February. The primary catalyst for gold`s slide, say traders and analysts, has been the euro`s decline and resulting strength in the US dollar due to worries about the economic future of the eurozone, following weekend elections in Greece and France.
Gold`s initial break below a key technical support level-USD 1,626 an ounce-at the start of the open-outcry session at the Nymex Tuesday also exacerbated the selloff. The situation in Europe is "fueling an anti-inflationary sentiment," said RBC Capital Stock Markets precious metals analyst George Gero. "You need to own gold to protect your purchasing power because you think prices are going through the roof. Now what is happening in Europe is deflationary, not inflationary, because the economic recoveries are slow in coming," which has pressured gold prices.

Sentiment is also getting even more bearish. "Open interest in gold futures also rose yesterday, indicating that new short positions are entering the market," says gold trader Kevin Grady of Phoenix Futures and Options. "A lot of longs have already liquidated and off of a move today you`ll see more shorts entering the market."

Now that gold tips for today has broken out of its recent trading range, look for further weakness, analysts say. "It`s been going sideways since September, 2011. Usually when you fail at the top of the range, USD 1800, you come down and kiss the bottom," says Jordan Kotick, global head of technical strategy at Barclays Capital. "So the bottom end of the range is the mid- to low-USD 1500 handle."

"MCX Gold has been stuck in a trading range for months and now it`s broken out and initiated a new direction. I think you trade the short side right now," says gold trader Mihir Dange of Amarok Capital.

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