Why Gold’s Price Tumble Today Shouldn’t Surprise You

New York (May 16)  What doesn’t break out must break down” is the mantra David Erfle, founder of juniorminorjunky.com, is sticking to in response to Tuesday’s session that saw gold fall more than 1.5%. Gold had trouble breaking out of its range of $1,300 to $1,365, and now with the dollar stronger, the yellow metal’s past of least resistance was down, according to Erfle.The veteran metals analyst added that after dropping below its critical support level of $1,300 an ounce, gold’s price trajectory in the short-term should be down.“I think you’re going to see gold weak into the next Fed meeting on June 13th,” David Erfle told Kitco News on the sidelines of the International Mining Investment Conference in Vancouver.“The sentiment is really, really low in gold, so that is good as far as contrarianism is concerned, but I think you’re going to see $1,280 gold real quick here,” he said.