"It's a long term bear market. If you bought into it today, don't expect it's going to do much. And if you own some and get a rally, get rid of it," said Dennis Gartman, editor of The Gartman Letter, a daily commentary on financial markets. "
"Seeing the panic and devastation in gold, some say gold will probably never be as popular as it was in last 2 years," he said.
(Read More: Gold Bears Out in Force After Fed)
Reflecting this bearish sentiment, Societe Generale last week downgraded its fourth quarter forecast for gold prices this year to $1,200 an ounce from $1,375, citing a "paradigm shift" in investor attitude towards gold resulting from the recent dramatic sell-off in April and the prospect of the U.S. Federal Reserve tapering its bond buying program later this year.
Swiss investment bank UBS also slashed its 12-month gold forecast to $1,050 from $1,750, warning that gold's appeal as an inflation hedge is at risk of becoming "obsolete" on Fed tapering plans.
Look at Gold's History
In order to determine the floor for gold, historical charts could provide a good indication, said Jacobs of Chart Prophet Capital.
According to Jacobs, the current gold bubble that began to inflate in 1999 is actually part of a larger bubble that started in 1968. Prices rose from $250 in 1999 to over $1,900 an ounce in 2011 - a 600 percent gain.
He has identified $700 as target for gold based on long term historical average prices and previous support levels. $680 is the low hit in 2008 during the global financial crisis.
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