Gold to challenge the $1921.50 2011 high – Commerzbank

FXStreet Team FXStreet

Gold is trading close to the $1860 mark, on course for the $1921.50 September 2011 high. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the yellow metal rally to stop at $1983.

Key quotes

“Gold is on course for the 1921.50 September 2011 high.”

“Please note there is room for an overshoot to the top of a 49-year channel at 1983.00. It represents our long-term target. This should hold the initial test and provoke some profit taking.”

“Forays above 2000 are expected to remain short-lived.”

“Support is offered by the 55-day ma at 1797 and the four-month uptrend at 1795. Below 1795 lies the 1765 May high. This guards the 1670 June low.”

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD bounces off lows near 1.1600

EUR/USD no gathers some steam and bounces off daily lows near the 1.1600 region. The pair’s daily pullback comes on the back of the firmer tone in the US Dollar amid rising Treasury yields and better-then-expected US data releases from the job market.

GBP/USD remains offered below 1.3300

GBP/USD is coming under renewed pressure, surrendering its earlier gains and retreating toward the area below the key 1.3300 support, always on the back of the bid bias in the Greenback and despite earlier hawkish comments from BoE poliymakers.

Gold keeps the bid tone near $4,200

Gold is still holding a positive tone around the $4,200 zone per troy ounce on Tuesday, though it’s starting to lose a bit of steam as the US Dollar finds support from stronger-than-expected jobs data. Even so, markets remain confident the Fed will move ahead with a rate cut on Wednesday, which ultimately lends support to the yellow metal.