Gold : Another Losing Year

Here is a long term chart ( monthly) showing where the price of gold ended last year ( 2014 ) and where it is ending up this year.
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I have drawn in two Fibonacci retracement levels formed off of the entire rally beginning in 2001 to the final top in 2011. As you can see, the price looks to close out this year below the 50% retracement level. In other words, gold has lost more than half of its bull market gains since peaking in 2011.
You can also see why that region near $1080 is so significant from a technical analysis perspective.
I have no idea where gold might go next year as I am not in the business of making price predictions. We will leave that for the gold prophets and various gold cult websites since there is never any consequence for making yet another failed price prediction, especially when the ability to blame any such failure on ‘gold price manipulation by sinister bullion banks’ is always a convenient foil.
What I can say is the last level of downside chart support before the psychologically significant $1000 level lies just below the current price. That level is between $1040-$1030. If gold loses this support level, it is going to $1000.

This post was published at Trader Dan on December 31, 2015.