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Yamada Says Gold May Slump After July Rally: Technical Analysis

Gold may resume a slump following the July rally of 7.3 percent, the most in 18 months, said Louise Yamada, the managing director of Technical Research Advisors LLC, citing momentum and moving-average signals.

The parabolic stop-and-reverse system and a death-cross formation, with the 10-month moving average below the 20-month measure, remain intact after the rally, said Yamada, the former head of technical research at Citigroup Inc. Gold may approach the 34-month low of $1,179.40 an ounce reached on June 28, the New York-based analyst said. The metal entered a bear market on April 12, falling more than 20 percent from the record settlement of $1,891.90 in August 2011.