Gold (XAU/USD) is bouncing ahead of the June low at $1670 but the yellow metal will need to regain $1765 to negate downside pressure, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
See – Gold Price Analysis: XAU/USD to sink towards the $1,500 mark – Deutsche Bank
Key quotes
“The market is bouncing just ahead of the $1670 June low and the 1671 2019-2021 uptrend. This is currently holding the downside.”
“Initial resistance is offered by the $1760/65 band, which is the May high and November low and a close above here is needed in order to alleviate downside pressure and signal recovery to the 200-day ma at $1861.10.”
“Above the 200-day ma at $1861.10 lies 1906, the 21st December high, and the top of the channel at $1918. This guards the November and September highs at $1965.84/$1973.8 and the 78.6% retracement at 2006.”
“Below $1670 would imply ongoing weakness to the $1584/78.6% retracement.”
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