Gold could re-test $1,261.18 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the ounce troy of the precious metal could re-visit the 200-day sma at $1,261.18.

Key Quotes

“Spot Gold remains sidelined, capped by the 200 day ma at 1261.18 and the market is currently under pinned by the 6 week uptrend at 1222. Ideally the market will hold here and recover to retest the 200 day ma”.

“Additional resistance lies at 1236.30/1242.65, the late June and October lows and the 55 week ma lies at 1256. Currently we are neutral to positive above the 55 day ma at 1185 but are alert to the idea of profit taking at the long term moving averages”.