Gold Price Forecast: XAU/USD to suffer a correction lower towards $1750 – Commerzbank

Gold’s race higher has reached the 200-day moving average (DMA) at $1810, which is currently holding. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, allows for failure here.

See – Gold Price Forecast: XAU/USD to face stubborn resistance at the $1800/34 zone – Credit Suisse

Key resistance is the mid-July high at $1834

“Gold has seen a strong bounce off the March lows at 1679.80/1677.83, which has now reached the 200-DMA at $1810. We suspect that this will repel the advance at least on the initial test and provoke some further consolidation.” 

“We would allow for a pullback towards $1750, the 29th June low and allow for an attempt at stabilization there. Near-term risks are on the downside but longer-term to fairly neutral/side lined.”

“Key resistance is the mid-July high at $1834, and the 55-week ma at $1837, a move above here is needed to retest the $1856/57 4th June low and the $1874 2020-2021 downtrend. 

“Support at $1679/77 is reinforced by the $1670 June 2020 low. Below $1670 would target the 2018-2021 uptrend at $1587.”