Gold: Rallies will remain capped by the 1561/86 zone – Commerzbank

Sell-off in the yellow metal has held 1452/45, the November 2019 low, Fibo, and 55-week ma. Strategists at Commerzbank analyze the technical outlook of the gold.

Key quotes

“Gold has sold off towards the 1453 Fibonacci retracement, the 1448.33 55 week ma and the 1445.53 November 2019 low. This has so far held the initial test.” 

“The intraday Elliott wave count is suggesting that rallies will remain capped by the 1561/86 zone. Initial resistance is the 1548 38.2% retracement and 1557/1558, the August high.” 

“Only above 1613, the 61.8% retracement would be enough to negate the current slide lower.” 

“Failure at 1445 will see a sell-off to the 1375.39 July 2016 high. This is reinforced by the 1366 January 2018 high.”