Gold may resume a slump following the July rally of 7.3 percent, the most in 18 months, said Louise Yamada, the managing director of Technical Research Advisors LLC, citing momentum and moving-average signals.
U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from the highest level since 2008, while the euro weakened and Treasuries gained as Spain raised its budget-deficit estimate for 2012 and German retail sales unexpectedly declined. Bond risk rose and oil declined.
Stocks rose, while Treasuries retreated, as an increase in U.S. service-industry growth tempered concern the largest economy was slowing and a report said Europe’s bailout fund was preparing a credit line for Spain. The yen fell as Japan’s finance minister said he’s concerned about the currency’s rise.
Michael Krauss , the JPMorgan Chase & Co. analyst who correctly predicted the bottom of the 2007-2009 bear market in U.S. stocks , said the rally that has started since then is unlikely to end with the rout this month.
U.S. stocks rose this week, with the Standard & Poor’s 500 Index completing its best February since 1998, as data on housing and the jobs market improved and monthly sales from Gap Inc. to Ford Motor Co. beat estimates.