Gold has settled below the $ 1800 level after bouncing from $ 1675-1685. However the Yellow metal needs to erode crucial resistance at $ 1835 to enjoy further gains towards January high at $ 1951, as reported by the strategists of Standard Chartered.
The difficult thing is to surpass the zone of 1835 $
“In a way, the easy part for gold is done. That is, the bounce from the crucial support at $ 1675-1685. While a bounce from support is not surprising, it is not a sufficient condition to ensure that the worst has finished”.
“The yellow metal needs to break above stiff resistance on a horizontal trend line coming from July at $ 1835. Until then, it would be premature to conclude that XAU / USD has come out of the woods.”
“Any break above the $ 1835 resistance would trigger a reverse head and shoulders pattern (the left shoulder at the June low of $ 1749, the head at the August low of $ 1684 and the right shoulder at the $ 1684 low. September 1720), which implies a possible rise to the June high of $ 1916, possibly to the January high of $ 1951. “
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