Gold Price Forecast: XAU/USD to drop to the August low of $1692 on a break below $1722 – Commerzbank

Gold (XAU/USD) is grinding lower. Support at $1722 is regarded as the last defence for the $1692 August low, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Resistance $1832/34 to cap the yellow metal

“Gold is grinding lower and will shortly encounter the 78.6% retracement at $1722. The new low has not been confirmed by the daily RSI and we may see some near-term consolidation.”

“Below $1722 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 $1600.”

“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. The 55-week ma also is found at $1822.” 

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