Gold Price Forecast: XAU/USD points to deeper decline towards the $1670 low – Commerzbank

FXStreet Insights Team FXStreet

Gold’s tepid bounce has not been enough to alleviate the bearish bias, in the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. The yellow metal is set to remain under pressure while below $1834.

55-week ma at $1819 has capped XAU/USD

“Gold’s outlook stays negative. It held the initial test of the 78.6% retracement at $1722. The bounce has fallen short of the 55-day ma at $1784 and immediate downside risk remains. Below $1721, support is found at $1679.80/$1677.83, and is reinforced by the $1670 June 2020 low.”

“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 is also found at $1819.”

“A close above $1834 is needed to retest the $1856/57 4 th June low and the $1860 2020-2021 downtrend.”

“Below $1670 would target the 2018-2021 uptrend at $1603.”

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