Gold is hovering around $1,800. Nearby support at $1779/74 is proving to be pretty solid. Therefore, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, favours near-term recovery.
Neutral to positive bias while above $1750
“Gold has tested and held a number of times over the $1779/74 support (38.2% retracement and the lows from the end of August). While above $1750, the 29th June low it will remain neutral to positive.”
“We favour a retest of the $1830/34 resistance. This is the location of the July high and the 55-week ma. A close above here is needed to retest the $1856/57 4th June low and the $1864 2020-2021 downtrend.”
“Below $1750, support is found at $1679.80/$1677.83 and is reinforced by the $1670 June 2020 low. Below $1670 would target the 2018-2021 uptrend at $1592.”
“The downtrend at $1864 guards the $1916.91 May high.”