Gold Flirting With Multi-Year Support

One of the more hated spaces out there today has to be Gold. A lot of haters and naysayers from what I can tell. I'm speaking strictly from an anecdotal perspective. But the statistics are pretty much saying the same thing. The average Gold newsletter advisor is recommending clients and subscribers to short gold with 31% of their portfolio. And yes that is a record. Gold Commercial Hedgers ("smart" money) are buying, speculators ("dumb" money) are shorting according to the recent Commitment of Traders Report.

But regardless of all that, Gold is at some serious support. Serious serious support that goes back to the Fall of 2011.

So the theory here is that if this gold support around the 1540s-1550s gets taken out to the downside, this could be the end of the big run in gold prices, at least for now. But I'm pretty sure anyone with a computer screen can see that.

Either way, I think this is a fascinating chart with clear support and pretty extreme pessimism. Definitely worth pointing out.

Tags: $GC_F $GLD