The expected pullback in gold is holding its 200-day average (DMA) and the broader risk is seen higher by the Credit Suisse analyst team. What’s more, lower US Real Yields should help XAU/USD.
Close below $1841 to reinforce a sideways trend
“Gold has seen its expected pullback to its 200-day average, now at $1841 and this is holding as expected. We stay biased higher and look for this to continue to hold for a move to resistance seen at the high for the year, November 2020 high and potential trend resistance at $1943/66.”
“Whilst we would expect $1943/66 to cap again for now to maintain the broader consolidation range, an eventual break should open the door to a move back to the $2075 record high.”
“A close below $1841 would reinforce a sideways trend but with a move below $1809/05 needed to warn of a retest of the ‘neckline’ to the recent base at $1765/55.”
“Gold has strengthened recently in line with the weaker USD (and flat US Real Yields) and if the USD can establish a multi-year top, this should similarly help the yellow metal finally break higher from its range and resume its core bull trend.”
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