Gold remains bid and attention is on the 20-day at 1875.30 and 55-day ma at 1908.68. According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, risk remains on the topside.
Key quotes
“Gold has recently tested and rebounded strongly from 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 1747.50 55-week ma.”
“Rallies are currently capped by the 20-day ma at 1875.30 and will find initial resistance at the 55-day ma at 1908.68. This is likely to act as the barrier to the mid-September high at 1973.8 and the 78.6% retracement at 2025 which guards the target band of 2070/2088. This is a combination of Fibonacci extensions and Elliott wave counts.”
“Below the 55-week ma at 1747.50(not favoured) would introduce scope to the 1670.49 June low.”
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