Gold prices broke the 2020-2021 downtrend at $1,832 and $1,834 and managed to stay above $1,860 for a while. However, Tuesday’s reversal of certain daily levels points to some near-term consolidation ahead of further gains, said Karen Jones, Team Head of Technical Analysis Research at Commerzbank FICC. Here are the levels pointed by the analyst of the famous bank…
What’s next for gold prices? Commerzbank analyst explained
Karen Jones, analyst of the famous German bank Commerzbank, shared her predictions for gold in a recently published note. Cryptocoin. com
As we have reported as , what kind of move will gold make now, which has made its investors happy with its rise over the past week? According to Jones, the previous resistance levels at $1,832 and $1,834 in the precious metal are now acting as support. The analyst also uses the following statements:
The close above $1,835 appears to be in key longer-term status. In the long term, the May 2021 peak, the 61.8% retracement level, and the 2011 high of $1,917 and $1,922 are targeted. This will act as the breakout point to the November 2020 high of $1,965 and the 78.6 percent retracement level to $1,989. This is the final defense for the August 2020 peak at $2,072.
Finally, the analyst points out that we should not forget that Tuesday’s price action is an important day return and we may see some slippage/consolidation in the near term. “Lower lows should find initial support at $1,834 and will likely be held at $1,791 by the 200-day moving average,” Jones concludes.
