Gold has stalled at the 20-day moving average and is likely to consolidate in the very near-term, says Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. She still expects in the long term, XAU/USD to reach the 1960 area.
“Gold has recently rallied to and failed at the 20 day ma at 1834.52 and sold off and is likely to consolidate very near term. Initial support is the 1791.45 12th July low ahead of the 1748 2019-2021 uptrend line.”
“While above there we will retain our longer term upside bias, however the lack of a sustained bounce is worrying. Rallies will find initial resistance offered by the 20 day ma at 1836 and the 1857.25 4 th June low. This guards the June high at 1916.91 and Fibo at 1921.”
“Longer term we still target the 1959/65 November 2020 high and the 2021 high. These guard the 1989/78.6% retracement and the 2072 2020 peak.”