Gold may extend its decline to the lowest level since August 2010 as the rally from a double bottom ends, according to Forex Capital Trading Pty.

“We struck a major low back at around $1,180 an ounce and then formed a double-bottom,” the Melbourne-based head of research Steven Dooley said by phone.

“It bounced higher and it now looks like the upwards movement is a bit exhausted at around $1,347. We think we’re swinging back lower and targeting around the $1,180 level or even lower.”

Gold slumped 22 percent this year on speculation the U.S. Federal Reserve will pare bond purchases that have bolstered the economy.

Charles Evans, Sandra Pianalto and Richard Fisher, regional Fed presidents in Chicago, Cleveland and Dallas, said this week the central bank may be closer to tapering bond buying as the jobs market recovers.

“The gold price is still well below the 200-day moving average and very much driving lower,” said Dooley. “There doesn’t seem to be any signs of any likelihood of reversal in the gold price at the moment.”

Bullion for immediate delivery fell 0.3 percent to $1,309.12 an ounce by 2:02 p.m. in Singapore.

Prices fell to $1,180.50 on June 28, the lowest level since August 2010, and rallied to $1,267.68 on July 2 before sliding to $1,208.58 on July 5. The double bottom was confirmed when prices climbed above $1,267 again, according to Dooley.

In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in an asset or security.