Yes it's been a rough time for metals the past couple of years with gold down -35%. Back in 2011, a 30-year Fibonacci extension level stopped gold on a dime, as bullish sentiment was hitting lofty levels and SPDR Gold Trust (GLD) became the largest ETF on the planet.
Another Long-Term level In Play
Now gold is hitting another 30-year Fibonacci extension level highlighted above, yet sentiment is much different than the last time a key Fib level was hit. Not only is a long-term Fib level in play again, two support lines also meet at this key Fib level.
Could this be an important level for Gold? Yes, Yes and Yes!
What To Watch
Gold needs to hold at this support setup or a key break will take place, not only impacting short-term traders, it would also impact long-term holders of gold as well. If support fails to hold here, long-term holders will want to consider hedges.