Gold price has suffered heavy losses and recently dropped below the key $1,800 zone. Karen Jones, Head of the FICC Technical Analysis Research Team at Commerzbank, said the precious metal would need to hold above $1,750 if there is a lower collapse for an uptrend to continue. Here are the details given by the analyst…
New comment for gold price from Commerzbank analyst
According to Karen Jones, a senior analyst at Germany-based Commerzbank, if the price of the precious metal falls below $1,750, the August levels of $1,693 can be seen again. According to the analyst, gold was sold aggressively after experiencing a significant rise. Cryptocoin. com, while its price reached above $ 1, 860, it suddenly decreased to $ 1,800. Jones says sales are seen as corrective. According to the analyst, the market should be well supported up to the $1,750 zones.
On the other hand, assuming the $1,750 area points to the downside, he points out that a recovery towards last week’s high to $1,877 is possible. The analyst highlights the May 2021 highs of $1,917 and $1,922 at the higher levels. These levels also coincide with the 61.8% Fibonacci retracement level and 2011 highs. The Commerzbank analyst uses the following statements about this level:
These levels will act as the breakout point that must be reached for a rise to the November 2020 high of $1,965 and the 78.6 percent Fibonacci retracement level to $1,989. The last line of defense will be crossed with the August 2020 peak of $2,072. Below $1,750 it will target $1,721 September 2021 low and $1,693 August low.