Gold technical analysis points to lower levels for now

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - After a great start to the last week, gold managed to lose some ofits shine after some impressive data from the U.S. in the form of retail sales.Now $1800 seems to be a bit of a line in the sand and the bulls need to gathersome momentum for another break and close above the psychological zone.

The price is right now in a support area at the blue shaded zone.This area was used to good effect as a resistance zone back in April 2020before the price moved to the all-time high. Below that, the strongest levelseems to be the red consolidation low. If the price breaks there it enters theabyss as there is not too much support heading into the next consolidation.

On the topside, there is a bit of traffic. The orange trendlinenow has three touches and any break would be a good sign for the bulls. Beyondthat, the purple trendline is the next important technical level and any breakthere could mean a retest of the $1919.2/oz wave high is on the cards. Anotherstubborn horizontal resistance is the green shaded area near $1834/oz but atthe moment the price is struggling to get beyond $1800/oz so it seems safe fornow. All in all, downside levels are in focus and PMI's at the end of the weekcould rock the boat slightly but we will have to wait and see.

By Rajan Dhall

For Kitco News

Follow rajfx10rdhall@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Monetary-driven precious metals outperform major base metals

Gold stocks hit by plunging equities markets

Gold stocks down as metal and equities momentum fades

Another Kazatomprom guidance announcement shakes uranium price

Major monetary drivers still supporting gold