The gold market showed more signs of weakness on Wednesday as the precious metal closed at $1,259.30 per troy ounce, down another $6.20 after Tuesday's $25 slide. What troubles some traders is that Wednesday's drop takes bullion below its second critical support level of $1,262, meaning that technical pressure could continue to weigh on gold in the days ahead.
"On the first assault, gold held the key $1,262 level as the market easily sliced through $1,277 support in yesterday's trade ... [a] breakdown through the $1,262 level has an immediate target of $1,247," said Peter Hug, global trading director at Kitco Metals in a note to clients Wednesday morning.
Dennis Gartman, publisher of the Gartman Letter, told CNBC's "Futures Now" on Tuesday that gold is "breaking down." He said that gold looks increasingly weak as geopolitical concerns over Russia and Ukraine subside and that the only thing that would motivate him to buy gold would be an "egregious upward turn in inflation" or "a war of some sort," and neither of those seem to realities at the moment.