FXStreet notes that gold’s spike lower has exhausted ahead of the March lows at $1679/$1677 but strategists at Commerzbank favour some consolidation/recovery as the sell-off has not damaged the underlying long term bull trend.

“Gold saw a massive spike lower and has sold off to the March lows at $1679/$1677, which are currently holding. This is reinforced by the $1670 June 2020 low.”

“The slide lower took out the 2019-2021 uptrend line, which was damaging but has not done enough to tip the market into bearish territory and for now we believe the move lower was exhaustive and favour some near-term consolidation and recovery.”

“Rallies will find initial resistance at the June low at $1750 and face tough resistance now above $1804 and $1834 (100 and 200-day ma and the mid-July high.”