Gold has taken out the 2020-2021 downtrend at $1,832/34. However, Tuesday’s key day reversal points to some near-term consolidation ahead of further gains, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Previous resistance now acts as support at $1,832/34

“The close above $1,835 is key longer term, it has targeted $1,917/22, the May 2021 peak and 61.8% retracement and the 2011 high. This will act as the breakup point to the $1,965 November 2020 peak and the 78.6% retracement at $1,989. This is the last defence for the August 2020 peak at $2,072.” 

“Please note that Tuesday’s price action was a key day reversal and we may see some near-term slippage/consolidation.”

“Dips lower should find initial support at $1,834 and is likely to be contained by the 200-day ma at $1,791.”

See – Gold Price Forecast: XAU/USD to struggle to rally on a peak in inflation expectations – Credit Suisse