The 55-week moving average at 1833 has capped the gold price rally. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the yellow metal to suffer further slippage.
See – Gold Price Forecast: XAU/USD to hit $1871 on erosion of August highs at $1834 – Credit Suisse
The 55-week ma has provoked initial failure
“Gold has rallied to and failed at the $1833/34 resistance. This is the location of the July high and the 55-week ma. Dips back from here are indicated to remain shallow and should be contained ideally by $1774.
“While above $1750, the 29th June low it will remain neutral to positive.”
“Key resistance is the mid-July high at $1834, a close above here is needed to retest the $1856/57 4th June low and the $1867 2020-2021 downtrend.”
“Below $1750, 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 $1592.”
“The downtrend at $1867 guards the $1916.91 May high.”