If history repeats itself, we could see another 11 percent of downside in gold.
The metal stretched itself to new lows early in the Thursday night session, reaching $1,179.40. However, we are starting to hit oversold conditions: Four out of the five major technical indicators that we follow are showing oversold.
Gold has recovered somewhat in early Friday trading, reaching a high of $1,211.40 before consolidating back below $1,200.
(Read More: Three Reasons Gold Will Go to $800: RBC Strategist)