Gold lost $46/oz. last week to close at $1,245.60 and, while it might not feel like it, gold is still up $43.70 for the year. My price forecasting model generates a target of 1,206 for this decline. Seasonally, gold tends to make a bottom of undetermined degree in the period from June to July.
This year, inflation expectations have me wondering if gold might bottom earlier rather than later during the two-month period. In the chart below, inflation expectations (blue) show a large jump-up this spring and can be seen at the right. Inflation expectations are highly correlated to the price of gold and have a tendency to lead gold at bottoms. They've gotten a big lead this time (bigger than most instances) and I have to believe that the only thing holding gold down is waiting for seasonality to be right for a bottom. Another week like last week would get gold to my price target. I find two different Middle Sections pointing to lows on Friday June 13 and Monday June 16.