Gold (XAU/USD) has fallen back sharply but strategists at Credit Suisse look for support at $1851/37 to continue to ideally hold though the yellow metal is fast approaching this key support.
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Key quotes
“Although gold has been unable to follow-through to the upside following what we viewed as a bull ‘wedge’, we continue to look for key flagged support at $1837 to ideally hold further weakness – the 38.2% retracement of the rally from March – for a fresh attempt to complete a bullish continuation pattern. Back above $1966 is needed to add weight to this view for $2016 initially, then a retest of the $2075 August high.
“An eventual move above the August high at $2075 stays looked for with resistance seen next at $2175, then $2300.”
“Below $1837 would warn of a deeper but still we think corrective setback to the 200- day average at $1783, potentially even $1726, but with a fresh hold looked for here.”
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