Gold strength is expected to be capped for now at its downtrend and 200-day average at $1849/67, strategists at Credit Suisse inform.
Support is seen at $1756.55
“Gold strength has extended to just shy of our objective of the 200-day average and downtrend from last August at $1849/67. We continue to look for this to cap strength for now for a fresh pullback into the broader range.”
“Big picture, an eventual break above $1867 would raise the likelihood of a resumption of the long-term bull trend, with resistance seen next at $1959/66.”
“Support moves to $1756.55, below which would warn of a retest of key support at $1682/71 – the 38.2% retracement of the entire 2015/2020 bull market and the recent and June 2020 lows.”