A look at some important support and resistance levels for gold
Bullion.Directory precious metals analysis 30 March, 2015
By Terry Kinder
Investor, Technical Analyst
Gold, contrary to many forecasts for a re-test of the lows, managed to get a decent bounce during the past few weeks. However, the gold price has been unable to take and hold above the $1,208.00 to $1,212.00 levels that would be the first steps necessary to see higher prices. We take a look at the gold charts and important support and resistance levels.
Jordan Roy-Byrne of The Daily Gold recently outlined some important support and resistance levels, including those for gold. Byrne writes:
Support for Gold is now well defined around $1150. There is major resistance at $1220-$1240 as well as $1300.
I think, generally, Roy-Byrne has defined a pretty good range for gold price support and resistance. The $1,220.00 range aligns fairly well with what Gary Wagner of The Gold Forecast outlined.
The gold price has remained within a declining pitchfork for the past year
The gold price has remained within a declining pitchfork pattern for the past year. The gold price has had difficulty overcoming the 0.382 Fibonacci Retracement level at $1,235.30 and the 0.500 level at $1,186.70 at various times. Other challenging and important levels for the gold price have been $1,208.00 to $1,212.00, $1,191.00, $1,1174.00, and $1,157.00.
I also believe levels based on the number 12 are worth keeping an eye on as well, such as $1,200.00, $1,212.00, $1,188.00, $1,176.00, $1,164.00, $1,152.00, $1,140.00, etc.
The gold price has remained within a descending price channel since around June of 2013
The gold price has remained within a descending price channel since around June of 2013. The channel is very wide – about $200.00 so price, for the moment, could run from around $1,310.00 to around $1,120.00 and still remain within the channel.
Conclusion
The gold price has had a nice run during the past few weeks. It’s failure to stay above the $1,208.00 to $1,212.00 level indicates a strong probability that the price will (barring some major unforeseen economic or geopolitical crisis) weaken. Resistance levels on the upside to watch are $1,200.00 and $1,208.00 to $1,212.00. Downside levels to watch are $1,188.00 to $1,191.00, $1,174.00 to $1,176.00, $1,164.00, $1,152.00 to $1,154.00.
For some further interesting insights into the gold price I recommend listening to Jordan Roy-Byrnes interview with Erik Townsend.
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