Gold Price Analysis: XAU/USD to suffer some near-term weakness – Commerzbank

Gold (XAU/USD) has been so far thwarted by the 55-day moving average at $1800.63. As this level holds the topside, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the yellow metal to experience some weakness in the short-term.

Long-term upside bias as golds holds the 2019-2021 support line at $1701

“Gold has tested and again failed at the 55-day ma at $1797.44. This has served to reinforce the resistance here and coupled with a now negative daily RSI and a negative Elliott wave count we would allow for some near term weakness.” 

“For now, we will allow for slippage to the 20-day ma at $1752. There is scope for $1724/23, the 61.8% retracement. Provided it holds there we should retry the topside once again. 

“Above $1799 lies the 200-day ma at $1852 and the downtrend at $1871. We suspect that this will hold the topside for now.” 

“Key support is the 2020-2021 uptrend at $1701 and the $1670.49 June 2020 low. While above here we will assume a longer-term upside bias.”