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Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, said that gold is likely to remain in a consolidative mode this week while it holds above the 1810 level.

Key quotes

“Gold traded through the 10-month uptrend but did not CLOSE below here and we have re-drawn it.

We favor recovery off the 1810 recent low but suspect that we will just see further consolidation for this week.

Near term rallies will find initial resistance at 1906, the 21st December high ahead of the November and September highs at 1965.84/1973.8.

This remains the barrier to the 78.6% retracement at 2006. Below the 1810 level lies key support, which remains 1760/1765.61 May high and 50% retracement.

We view the market as having based here and note that this support is further reinforced by the 1781 55-week ma.

Below 1760 would leave the market under pressure and attention on the 1670 June low.”