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The above chart looks at Gold over the past 18-years. We applied Fibonacci retracement levels to the lows in 1999 and the highs in 2011.
Gold peaked in 2011 and declined to its 50% retracement level at (1) above. This means it gave back half of the gains it achieved in the rally from 1999 to 2011. Gold has rallied the past couple of months after hitting dual support at (1) above.
The rally now has Gold at its 38% retracement level and dealing with falling channel resistance, at (2) above.
Joe Friday, Just The Facts….Gold is facing a dual resistance test at (2), this would be a bad place for Gold Bulls, should weakness start taking place here.