Gold Price Action in 1980

Classic technical analysis teaches that history repeats itself in all markets. It also teaches that major price highs and lows in markets should be considered major technical support and resistance levels for those markets. June gold futures prices last week hit a fresh contract and 25.5-year high of $732.00 an ounce–taking out by a mere $3.00 the September 1980 spike high in nearby gold futures, which was $729.
The all-time high in nearby Comex gold futures prices was scored on Jan. 21, 1980, at $875.00 an ounce. Daily price data for nearby Comex gold futures during the fall of 1980 shows the following:

On Sept. 23, 1980 nearby fold futures hit a high of $729.00 an ounce, but did close well off the session high that day. Three trading sessions later, on Sept. 26, 1980, gold prices dropped sharply to a low of $663 an ounce, and closed near the session low, at $669.50.
The following trading session, Sept. 29, 1980, nearby Comex gold futures hit a daily low of $655.00, and again closed near the session low, at $660.50. On Oct. 3, 1980, nearby gold futures hit a daily low of $650 an ounce, but then rebounded to close near the session high, at $670 an ounce. The following few days saw a corrective bounce that was short-lived.
Prices then began a downtrend that lasted for nearly two years. On Oct. 23, 1980, nearby gold hit a daily low of $620.00. On Nov. 7, 1980, prices hit a session low of $593.00. On Dec. 11, 1980, nearby gold futures hit a daily low of $539.00 an ounce.
Less than a year later, on Aug. 3, 1981, nearby gold futures hit a session low of $387.50 an ounce.
NOTE: I have recently completed an e-book called “The Art of Effective Stop Order Placement in Trading Markets.” You can buy it for $14.95 by clicking on the “SUBSCRIBE” section of my website at www.jimwyckoff.com –Jim