Gold has rallied to and so far failed at the $1813 55-week moving average. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects XAU/USD to drop to the $1721 September low.
Gold falters at the 55-week ma of $1813
“Gold has rallied towards the 55-week ma at $1813 and currently remains capped here. We suspect that the move back from here will be pretty shallow, but we are essentially neutral at this point.”
“XAU/USD has to clear the $1832/34, highs since July and the $1842 2020-2021 resistance line in order to regenerate upside interest for a recovery to $1856/57 4th June low. Above here lies the $1917 May 2021 peak.”
“We have minor support at $1760 ahead of the $1721 September low. Below $1721, support is found at $1679/77, and is reinforced by the $1670 June 2020 low.”
“Below $1670 would target the 2018-2021 uptrend at $1611.”
See – Gold Price Forecast: XAU/USD to tank towards $1565/60 on a break below $1691/77 – Credit Suisse
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