from Gold Silver Worlds:
In an uptrend resistance becomes support. The precious metals are in a secular (15 to 20+ years) uptrend and they are currently pulling back to long-term support levels.
That’s my story and I’m sticking to it!
Let’s start with Gold itself. Due to its volatility the support level in COMEX Gold is actually a zone as opposed to a cleanly defined line. Notice how price ran into resistance between $1055 and $1110 back in 2008 / 2009 and then turned that level into support in late-2009 / early-2010. Now, in 2015, Gold has pulled back almost to the support zone with a low so far of $1132.
Some analysts are calling for a low of $1030 before the current cyclical bear trend is completely finished. While none of us want to see a price of $1030 on the yellow metal, notice that $1030 would just be a test of the long-term support zone.
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