Gold has been on a wild ride this year, climbing about 32 percent to a July peak of about $1,380 an ounce before sliding as much as 10 percent by Friday.

In fact, gold’s slump this week was the worst in more than three years as investors weighed the possibility that the Federal Reserve will hike interest rates in December.

Higher borrowing costs would restrict the supply of dollars and pressure bullion prices.
Fortunately for owners of the yellow metal, its price has strong support at levels that preceded last summer’s rally following the U.K. vote to leave the European Union, according to Barron’s columnist Michael Kahn.

“I would consider the $1213 area to be a strong candidate for a level at which bulls will jump back in,” Kahn writes, citing Fibonacci analysis that relies on mathematical patterns to forecast price movements.

Gold futures traded in New York slid to $1,243 an ounce before rebounding slightly on Friday.

“For investors who thought monster gains in gold and gold stocks would continue unabated consider this a lesson learned,” Kahn says. “But rather than give up, now is the time to put together a plan to take advantage of the gift the market appears to have provided.”

Meanwhile, Goldman Sachs Group Inc. said the drop in gold prices presents a buying opportunity.

“We would view a gold sell-off substantially below $1,250 as a strategic buying opportunity, given substantial downside risks to global growth remain, and given that the market is likely to remain concerned about the ability of monetary policy to respond to any potential shocks to growth,” Goldman analysts including Jeffrey Currie and Max Layton said in an Oct. 6 report cited by Bloomberg News.