“We view this correction as a buying opportunity,”

“Gold had become increasingly frustrating to trade during the past three months. Bulls have been disappointed by gold's lack of progress despite continued strong demand from institutional and retail investors through futures and exchange-traded products,” he said in his report. “Sellers have also been frustrated by a lack of proper corrections following the strong surge at the beginning of the year.”

Hansen noted that a drop to support at $1,245 and then again even a break to $1,228 an ounce would be a healthy correction and take some of the “speculative froth” out of the marketplace.