Gold technical analysis points to lower levels for now
(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.
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