Gold (XAU/USD) remains under pressure and is trading back at the 10-month uptrend at 1830. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, is closely watching the 1810 level as a break below it would open the door for a slump to the 1765/60 area.
“The market has failed to make any impression on the 200-day ma at 1875 and attention is on the downside and the 1810 recent low.”
“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 the 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 1791 55-week ma.”
“Below 1760 would leave the market under pressure and attention on the 1670 June low.”