Gold (XAU/USD) is extending Tuesday’s decline towards $1760 as the yellow metal is so far thwarted by the 55-day moving average at $1800.63. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects gold to retry the upside as the $1730/23 zone is held off.
2019-2021 support line comes in at $1697
“Gold’s up move has faltered at the 55-day ma at $1800.64 for now. More worrying is the fact that the Elliott wave counts have turned more negative and are implying a retracement towards the $1730/23 zone. Provided it holds there we should retry the topside once again.”
“Above the 55-day ma lies the 200-day ma at $1856.36 and the downtrend at $1876. We suspect that this will hold the topside for now.”
“Key support is the 2020-2021 uptrend which is also in this vicinity at $1697 and the $1670.49 June 2020 low. While above here we will assume an upside bias.”
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