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Gold’s nice 10-year rally has taken place within a clean rising channel, with line (2) being lower support.
It only broke below line (2) one time for a few months and that was during the 2008 financial crisis. I shared this chart with Premium & Sector Sentiment Extreme members last week, reflecting that Gold & Silver could see a new round of selling on breaks of key support lines at (1).
Gold came under selling pressure and declined over 10% in a few months when this support line gave way back in 2008. Long Gold owners need to be aware the same thing could happen again on a break of support at (1) above.