Commerzbank feel gold should stabilize but do not rule out some slight "slippage"
(Kitco News) - Karen Jones, who is the Team Head of FICC Technical Analysis research at Commerzbank has said in her morning note that the price of gold could consolidate after some of the recent moves lower. She said, "Gold has sold off to the 55-month ma (moving average) at 1707, between here and the 1653 uptrend, it should stabilise".
She said some caution could be needed and noted, "Currently we cannot rule out further slippage towards the 1653 2019-2021 uptrend. If seen, we would expect this to hold the downside.".
On the plus side, Jones stated "Rallies will need to regain not only 1760/1765.61, which is the May high and previous 50% retracement, but also the short term downtrend at 1794 in order to alleviate downside pressure and signal recovery to the 200 day ma at 1861.".
Looking up she finally added, "Above here lies 1906, the 21st December high, and the top of the channel at 1918. This guards the November and September highs at 1965.84/1973.8 and the 78.6% retracement at 2006". So there could be some light at the end of the tunnel on the technical front for the yellow metal.