The price of Gold and the Gold ETF NYSEARCA: GLD have raced higher in August.
In fact Gold reached up as high as 1565 this week before falling back a bit.
The rally is being spurred by investors seeking “safety” from global trade and economic concerns, as well as a volatile stock market.
Today’s chart of the day highlights the Gold rally from a long-term perspective.
As you can see, Gold is testing an old price support level that is now resistance at (1).
This price area isn’t any ordinary resistance level: After gold peaked in 2011, it represented the 23.6% Fibonacci level and triple support.
So this is an important breakout test in gold. When gold succeeds in breaking out above this level, it will likely target the $1800 level at (2).
Gold Price “Weekly” Chart
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