At 1900 dollars per ounce gold was extremely overbought, and a correction was necessary. However, Faber now believes that gold could undergo a significant correction similar to what happened between 1974-1976, when gold fell 40 percent. Faber notes that a large decline in gold is now a distinct possibility. The first support level for gold is at the 200-day moving average around 1500 dollars per ounce. Despite the potential for a pullback, Faber still likes gold and believes it will trade significantly higher. - in Seeking Alpha
ETFs: SPDR Gold Trust ETF (GLD)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
