What's Next for Gold?

Ulrich Baumgarten | Getty Images

Given the speed and magnitude of the recent sell-off in gold, what's next for the precious metal?

Since 1979, there have been six previous instances when gold plunged more than 10 percent in two days. In five of those times, gold bounced back nearly 5 percent in the two weeks that followed.

The bounce, however, remained only temporary as prices continued to decline in the long-term. In fact, seven and eight weeks out, the sell-off accelerated and the price dipped more than 5 percent.

Today, Barclays' technical team revised its downside targets toward $1275-$1350, the lowest level since September 2010.

Here's a look at how gold prices performed, on average, in the weeks following a two-day decline of more than 10 percent.

Gold Performance (%)
1 Week Later 3.21
2 Weeks 4.93
3 Weeks 2.84
4 Weeks -0.05
5 Weeks -0.46
6 Weeks -1.42
7 Weeks -5.06
8 Weeks -5.34