Gold Price Forecast: XAU/USD needs to close above $1834 to extend its recovery – Commerzbank

Gold (XAU/USD) has recovered from support at $1750/43. In the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the yellow metal looks set to range further.

See – Gold Price Forecast: XAU/USD to drop on Fed's tapering and prospects of rate hikes – ANZ

Resistance sits at $1832/34

“Gold has sold off to $1750, the 29th June low, it traded below there but most importantly did not close below here and the market is attempting to recover.”

“We have extensive resistance from $1795 to $1834 (55, 200-day moving averages and highs since July) and we look for rallies to struggle on moves into this band – but we actually view the market as pretty sidelined.”

“A close above $1834 is needed to retest the $1856/57 4th June low and the $1860 2020-2021 downtrend.”

“Below $1743 (this week's low), support is found at $1679.80/$1677.83 and is reinforced by the $1670 June 2020 low. Below $1670 would target the 2018-2021 uptrend at $1597.” 

“The downtrend at $1860 guards the $1916.91 May high.”