Gold and Fibonaccis

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I haven’t been trading gold or miners recently. Precious metals certainly seem to have made some kind of bottom; whether it is “the” bottom remains to be seen, but getting beneath the levels set at the end of 2013 would take quite a strong punch.

Today I drew the Fibonacci retracements spanning from GLD’s high (September 6, 2011) to its recent low (December 31, 2013). What’s fascinating is that even those these anchor points are ex post facto, the price of GLD seems to have an awful lot of respect for these retracement levels as support and resistance.

I personally think GLD will soften here, working its way back to its breakout level of about $123. Getting past that overhead retracement level however, is going to take an equally strong “punch”. If it manages to do so, it seems clear a new bull market is firmly in place for precious metals.