Gold based between the late 90’s and until 2003 at around $300 bucks an ounce. it spiked to its high of 1950 during the fear trade run up of the 2012 election. That August, 3 months before the 2012 election, the gold bugs had their day in the sun. Today, we are testing 4 year lows at 1169. Simple math gives us 1125 as the half way back point of this historic rally. Below I’m posting two charts. A picture is worth 1,000 words. First is a weekly chart of the Dec 2014 futures contract.
Now take a look at this 25 year chart for a different perspective:
The 50% retracment will get a lot of attention. It should be a pivot point for both bulls and bears. CER