In April, we wrote that a move by gold prices below the support level near $1540 had a downside target near $1280. This calculated target is above the historical support level near $1260 so this suggested that any fall below $1540 has the potential to fall to support near $1260.
We suggested that this downside target would take many months to achieve. The development, however, has taken just two months to materialize. Bullion fell to $1182 in late June before developing consolidation near $1260.