How low will gold go?

Precious metals have had an exceptional 12 months, with the price of gold and silver rocketing. But now we are seeing a correction. Dominic Frisby looks at the phases of a typical gold bull market, and asks where we're likely to see the gold price go from here.

Gold and silver have both entered a correction phase.

Gold began 2011 at around $1,420 an ounce. By the end of last week, it was more than 3% lower at $1,370. Silver, meanwhile, toasted the New Year at around $31 an ounce. Celebrations were due it had risen some 80% in 2010 but the hangover quickly set in. A week later it was down more than 5% at around $28.60.

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