Gold continues to hold over the 78.6% retracement at $1722. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the yellow metal to move back lower from the $1834 resistance level.
See – Gold Price Forecast: XAU/USD to hit $1850 before tanking through next year and beyond – ANZ
Resistance at $1834 to be tough
“The bounce has yet to clear moving average resistance at $1795/$1800 and we have extensive resistance from $1784 to $1834 (55, 200-day moving averages and highs since July) and we look for rallies to struggle on moves into this band. The 55-week ma also is found at $1817.”
“We are relatively neutral but downside risk remains. Below $1722, support is found at $1679.80/$1677.83, and is reinforced by the $1670 June 2020 low.”
“A close above $1834 is needed to retest the $1849 2020-2021 resistance line and $1856/57 4th June low. Above here lies the $1917 May 2021 peak.”
“Below $1670 would target the 2018-2021 uptrend at $1606.”