I haven’t been trading gold or miners recently. Precious metals certainly seem to have made some kind of bottom -- whether it's 'the' bottom remains to be seen, but getting beneath the levels set at the end of 2013 would take quite a strong punch.
R-E-S-P-E-C-T
On Wednesday, 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 although these anchor points are ex post facto, the price of the SPDR Gold Trust 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.
