My prediction that gold would grind its way down to $4,000 before stabilizing has just about been realized, but I do wonder if there isn’t farther to go. Looking at GLD, I see three levels of support. The first is the dashed green horizontal, representing the most proximal gap breakout.
The next level, roughly tinted in yellow, is at about $350, which is a much stronger level of support represented by the ascending trendline.
If that fails as well, pretty much the last hope is the price gap way down at $318.
I haven’t had a meaningful position in precious metals for months, but I’ll be watching to see when gold seems to be seriously stabilizing so I can get back into it on the long side, hopefully for a substantial period of time.
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