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Charts Say Gold Is Heading for $768

CNBC.com
Tuesday, 2 Sep 2008 | 8:27 AM ET

After failing to hold an important support level, gold is on its way to below $800, according to a technical analyst.

Charting the Commodities
Soybeans tend to decline from September to October as the cyclicals kick in, according to Sandy Jadeja from ODL Securities. Looking at the chart for heating oil, Jadeja predicts a fall across the energy sector.

After failing to hold a support level of $816, "$768 is the next downside target," Sandy Jadeja, chief market strategist at ODL Securities told "Squawk Box Europe" Tuesday.

Gold struck a two-week low of $805.20 an ounce on Tuesday after oil fell to its lowest in nearly five months and the dollar rallied to two-year high against the British pound and a seven-month high versus the euro.

The precious metal has lost more than 20 percent in value since spiking to all-time high of $1,030.80 in March, mainly driven by profit taking, oil's falls from record highs and a rebounding dollar, Reuters reported.

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