The Chart That Says The Gold Sell-Off Still Has A Long Way To Go

In the second quarter of 2013, gold posted one of its worst quarterly declines ever, losing 23% of its value.

The shiny yellow metal endured two brutal liquidations in Q2 – the first came in early April, and the second has played out over much of June.

After falling as low as $1184 an ounce on June 27, the metal is arguably looking oversold. (Today, it's up 2.6%, and is now trading around $1256.)

The big question, of course, is whether the bleeding in the gold market has stopped for now.

Those still bearish on the metal, even at these levels, are probably looking at the chart below, provided by Credit Suisse analysts (via David Hall), who have been among the most bearish toward gold on Wall Street.

The chart compares the real price of gold (adjusted for consumer price inflation) during the bull market of the 1970s and subsequent unwind to today's experience.

By this measure, at least, gold may have further to fall.

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