Thursday, January 12, 2012

Long term Gold

Monthly chart of the World Gold Index going back to the lows in 2001.  A fibonacci retracement is from the lows in 2001 to the peak in 2006.  This projects a potential top / major resistance at the 423.6 fib level around $2275.


The white box is the range Gold has been in since the summer of 2011 and is consolidating before the next bull move towards the $2000 level.  Short term, it is trading above the 200 dma which may indicate that the late December lows was the bottom of the downtrend.

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