Gold futures could fall to $1,100

Gold futures could fall to $1,100

Gold futures could fall to $1,100, Gold futures overshot on uptrend, says analyst. Now, gold futures bottoming at $1,500 an ounce or, and that doesn't hold, to between $1,100-$1,200.The price of gold, which has fallen in recent weeks as part of a broader market sell-off, has even further to fall, Marc Faber, author of the Gloom Boom, and Doom Report, told CNBC Monday.

"We overshot on the upside when we went over $1,900," said the fund manager, who has 25 percent of his portfolio in gold.

"We're now close to bottoming at $1,500, and if that doesn't hold it could bottom to between $1,100-$1,200."

Faber, who said that the recent sell-off had come about following nervousness about industrial metals, added that a 40 percent correction wouldn't surprise him.

US gold futures suffered their biggest daily drop in more than five years on Friday.

Recent falls in the gold price came after a sustained rally which saw some predict that prices would hit $2,000 or even higher.

While he is bearish in the long-term, he forecast a rebound in markets in the short term.

"Both equity markets and gold markets have become very oversold, and I think a rebound is occurring," he said.

"Following this rebound, which I expect to get underway this week, there will be a longer slowdown."

Read more: csmonitor