Reuters: Gold bears say charts point down toward a 3-year low

Spot gold's sharp tumble on Wednesday sent a bearish signal to many technical analysts, suggesting that the precious metal may slide further toward three-year lows.

Although gold was up for the week, the bears pointed to bullion's 2.65 percent slide on Wednesday off of an exact double top at its one-month high. They said this indicated that impetus to push above the $1,347.69 per ounce high had run out. Despite the bearish consensus, at least one analyst held out hope that gold could rebound to the highs of early this year around $1,700 an ounce.

Bullion has gained more than 9 percent in three weeks. On Friday, spot gold fell 0.2 percent to $1,330.30 per ounce by 3:46 p.m. Traders said some profit taking was seen after a session high of $1,340.

But gold's failure to scale the $1,350 peak of June 20, a day when gold dropped almost 6 percent, brought the bearish forecasts out. Chartists said they see targets down to $1,295, $1,265 and possibly lows last seen three years ago.

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