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Gold May Fall to $1,270 on Head and Shoulder: Technical Analysis

Gold may extend its 19 percent slump since January as prices on charts form a “head and shoulder” pattern that signals more selling, according to Credit Suisse Group AG.

Bullion fell below $1,360 an ounce, a support level from the upward trend that began in late June, David Sneddon and Christopher Hine, technical analysts at the bank, said in a report yesterday. The drop may lead to the formation of a small head-and-shoulder top, they wrote. The pattern comprises three consecutive peaks on a chart, with the middle being the highest.