Gold is attempting to recover off trendline support at $1819. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the yellow metal will face initial resistance at $1906.
“Gold sold off sharply last week all the way back to the 10-month uptrend currently at $1819. This is currently holding the downside and the market is attempting to recover.”
“Near-term rallies will find initial resistance at $1906 the 21st December high ahead of the November and September highs at $1965.84/$1973.8. This remains the barrier to the 78.6% retracement at $2006.”
“Below the $1819 level lies key support, which remains the $1760/$1765.61 May high and 50% retracement. We view the market as having based here, and note that this support is further reinforced by the $1776 55-week ma.”
“Below $1760 would leave the market under pressure and attention on the $1670 June low.”
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