In view of Karen Jones, analyst at Commerzbank, Gold’s price action continues to resemble a consolidation pattern.
“We view this in a bullish light and would consider a close above the near term resistance line at 1515 as the precursor to a challenge of the 1557.29 4th September high.”
“Gold has previously completed a major base. This offers an upside measured target to 1690/1704 longer term. The recent low at 1459 is regarded as an interim low and together with the mid July peak at 1453 is expected to act as a short term floor for the market.”
“Below here lies the 55 day moving average at 1448.97 ahead of support offered by a double Fibonacci retracement at 1412/1406 (38.2% retracement of the move up from the August 2018 low) and 50% retracement of the move up from the May low).”
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