Commerzbank is still looking for some upside in gold

Germany (Aug 18)  Karen Jones and the technical team at Commerzbank bank have released their latest note on the major commodities. There is a mild weekly upside bias in the report and longer-term the bank think the yellow metal could move sideways.

She noted "Gold has seen a strong bounce off the March lows at 1679.80/1677.83, which is approaching tougher resistance offered by the 55, 100 and 200 day ma at 1806/12 and the resistance line at 1813. We suspect that this will repel the advance at least on the initial test and provoke some further consolidation."

In terms of problem areas that could arise from the upside, key resistance is the mid-July high at 1834, a move above here is needed to retest 1856/57 4th June low and the 1878 2020-2021 downtrend.

On the downside, support at 1679.80/1677.83 is reinforced by the 1670 June 2020 low. Below 1670 (not favoured) would target the 2018-2021 uptrend at 1584.

Reuters