Gold (XAU/USD) has broken below the previous support level of $1,850 per ounce. This has resulted in a further deterioration of the technical outlook. Georgette Boele, Senior Precious Metals Strategist at ABN Amro, remarks that the long-term uptrend would be over if the yellow metal losses the $1,800 level.
Key quotes
“The 200-day moving average comes in just above the psychological level of $1,800 per ounce. We expect a test of this 200-day moving average. If prices break below and also close below, we think that the long-term uptrend is over.”
“We are cautious as many investors have bought gold and they are getting more nervous. They start to fear that we may have seen the peak. If that is the case it could take a long time before we see the level of $2,000 again.”
“As long as $1,800 per ounce is not taken out the trend remains positive.”
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