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Gold Support and Resistance Levels

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A look at some important support and resistance levels for gold

Terry Kinder precious metals analysisBullion.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.

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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 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 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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