Gold’s rally higher will shortly encounter tougher resistance at $1806/12, where the yellow metal is likely to struggle, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
See – Gold Price Forecast: XAU/USD to struggle to overcome the $1808/1834 area – Credit Suisse
Break below the $1670 June 2020 low to target $1584
“Gold has seen a strong bounce off the March lows at $1679/$1677, which is approaching tougher resistance offered by the 55, 100 and 200-day ma at $1806/12 and the resistance line at $1813. We suspect that this will repel the advance at least on the initial test and provoke some further consolidation.”
“Key resistance is the mid-July high at $1834, a move above here is needed to retest the $1856/57 4th June low and the $1878 2020-2021 downtrend.”
“Support at “1679/$1677 is reinforced by the $1670 June 2020 low.
“Below $1670 (not favoured) would target the 2018-2021 uptrend at $1584.”
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