Gold needs to clear the $1,973 September high to resume the uptrend – Standard Chartered
Gold’s medium-term uptrend remains intact, having held above the 200-week moving average at $1,398, however, the yellow metal needs to break above the September high of $1,973 to resume the uptrend, as pe Standard Chartered. On Monday, October 19, XAU/USD is on the rise, trading above the $1,900 level it has been battling in recent weeks.
Key quotes
“The fundamental drivers of gold remain intact, including low and falling real (net of inflation) yields and a weaker USD.”
“From a technical perspective, the retreat since August is viewed as unwinding of the extreme overbought conditions on longer-term charts, rather than the end of the uptrend.”
“The long-term uptrend remains intact given that gold is above the 200-week moving verage (now at $1,398). However, in order to resume the uptrend, gold would need to break above key resistance at the mid-September high of $1,973 (immediate resistance is at $1,929).”
“On the downside, there’s initial support at $1,890, but any break below subsequent support at the September low of $1,848 would raise the chances of a drop toward the 200-day moving average (now at $1,753), which could be a tough cushion to crack.”
Author
FXStreet Team
FXStreet
