Gold (XAU/USD) has sold off to test and reversed from support at 1760/1765.61, which is the May high and 50% retracement. The yellow metal is trying to reassert its up move but it is struggling with the initial 1814 resistance, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
See – Gold Price Analysis: XAU/USD sees strong support around $1765 – Standard Chartered
Key quotes
“Gold is attempting to recover but will find initial resistance at 1814 (near-term resistance line) and the 200-day ma at 1862. Currently, we suspect that it is trying to reassert its up move – more work is needed.”
“Below 1760 would leave the market under pressure and attention on the 1670 June low. The 2019-2021 support line lies at 1650.”
“Initial resistance is offered by the band of moving average resistance at 1850/62. Above here lies 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.”
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