Gold continues to see signs of recovery. In the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, XAU/USD will need to regain the 200-day moving average at $1794 to confirm upside scope to the July highs.
XAU/USD looking for a deeper rally
“The bounce has yet to clear moving average resistance at $1794 and only above here will allow for a rally towards $1834.16/21, which are the highs since July and we look for rallies to struggle on moves to here. The 55-week ma also is found at $1815.
“We are relatively neutral but only a close above the $1845 2020-2021 resistance line would regenerate upside interest for a recovery to $1856/57 4th June low. Above here lies the $1917 May 2021 peak.”
“Below $1721, 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 $1608.”