Perspective time in gold. Here is the chart of the continuous Comex contract for gold since the beginning of the year. As you can see by the chart, gold has been in a long term up trend channel that started in January around 1313. There is no doubt in my mind whatsoever that the bull case for gold will endure until the end of our current monetary system. That means that natural Fibonacci support levels can and will be tested from time to time and are natural levels that generate buying. The East will continue to acquire gold as the West sells its paper. The Fibonacci 38.2% retrace level is the strongest support level during a strong bullish or bearish move. It is where I would expect gold to reverse on a strong pullback. Currently this retrace level falls around 1465, which would be less than a 10% pullback from the high in gold. I think this is the worst case potential for gold and will be the floor of any trading range. we have two major levels of support between current price and that level, at 1486 and 1473. All of the major moving averages, 18 thru 200 day, are aligned in bullish formation providing support, all in order from shortest duration to longest.
This chart is hugely bullish! An absolute washout that has only happened a couple of times since the bull market in gold started in 2001 would be a retrace to the 200 day moving average around 1394. This would equate to a pullback of 10%, a typical thing seen in the stock market.
Life is good as a gold investor. The trend is your friend. This debt based monetary system is going to Hell, that is the trend. Gold is on the virtuous road to its eventual seat as the world’s premier reserve asset. Hold firm and study the case I present. If doubt erodes your confidence, study more. Knowledge is power.