FXStreet reports that Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, thinks that gold’s tepid bounce has not been enough to alleviate the bearish bias. 

“Gold’s outlook stays negative. It held the initial test of the 78.6% retracement at $1722. The bounce has fallen short of the 55-day ma at $1784 and immediate downside risk remains. Below $1721, support is found at $1679.80/$1677.83, and is reinforced by the $1670 June 2020 low.”

“We have extensive resistance from $1784 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 is also found at $1819.” 

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