Gold suffered heavy losses and broke below the key $1,800 area on Tuesday. Collapse lower will need to hold over $1,750 for an upside bias to remain, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
Break below $1,750 to put the $1,693 August low back in focus
“Gold has sold off aggressively following a key day reversal. The sell-off is viewed as corrective and the market should remain well supported on dips back to the $1,750 region.”
“Assuming that the $1,750 area holds the downside, we should see a recovery to last week's high at $1,877. Above here lies $1,917/22, the May 2021 peak and 61.8% retracement and the 2011 high. This will act as the break-up point to the $1,965 November 2020 peak and the 78.6% retracement at $1,989. This is the last defence for the August 2020 peak at $2,072.”
“Below $1,750 will target the $1,721 September 2021 low and the $1,693 August low.”
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