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Yes its been a rough time for metals the past couple of years, Gold -35%. Back in 2011 a 30-year Fibonacci extension level stopped Gold on a dime, as bullish sentiment was hitting lofty levels and $GLD became the largest ETF on the planet.
Now Gold is hitting another 30-year Fibonacci extension level highlighted above, yet sentiment is much different than the last time a key Fib level was hit. Not only is a long-term Fib level in play again, two support lines also meet at this key Fib level.
Could this be an important level for Gold? Yes, Yes & Yes! Gold needs to hold at this support set up or a key break will take place, not only impacting short-term traders, it would impact long-term holders of gold as well. If support fails to hold here, long-term holders of Gold will want to consider hedges!!!
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