Gold price about to re-enter its long-term trading range
For those wondering why the gold price is finding it a little tough going to get through the $1695/1700, level the below chart should tell you all you need to know.
When the gold priced topped out at $1032 on March 17 2008 it was followed a few months later by a low of $733 on October 20th, a fall of nearly 30%. These two points marked the start of trading range that lasted until early May 2012. However, with the gold price around $1695 it is right up against the support line of that 4 year range.
Gold $:
(click for shaper image)
Longer term gold $:
(click for shaper image)
If/when we break back into that 4 year range look for that old support line to once again become support going forward. But more importantly is that the ultimate top of that range comes back into play which currently stands at over $2150 – it’s no wonder the bears are trying to defend this line with gusto, however with the momentum currently behind this latest run they probably won’t be able to last out the week.
The top of that range is now:
(click for shaper image)
Related posts:
- Gold price falls back to long-term support
- Gold price falls back to bottom-end of its trading range… (nobody surprised at all)
- Gold price finally breaks its 8 week trading range – so how much downside is left?
- World Gold Council: Gold’s long-term price trend is maintained during Q1 2012
- Gold-Long Term Investment
Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-about-to-re-enter-its-long-term-trading-range-7820/
Posted by Thomas Paterson on Sep 4 2012. Filed under Gold News.
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