What did we see 7-years ago that would suggest Gold was about to struggle for years to come? The Swiss Franc for years to seems to influence the price of Gold and it was testing the top of a 20-year rising channel where it was creating a monster bearish reversal pattern at (1).
If you look back, the Franc and Gold both peaked together back in 2011 at (1).
The multi-year decline in Gold and the Franc have both testing long-term support at each (2). With the trends for both being down, this support test looks to be one of the most important in the past 15-years!!!
Keep your eyes glued to the Franc because if it would break strong support at (2), the decline could be large because….Long-term rising channel doesn’t come into play until around 15% below current prices!
The SPDR Gold Trust ETF (GLD) rose $0.09 (+0.08%) in premarket trading Thursday. Year-to-date, GLD has declined -7.07%, versus a 7.40% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.