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Rising Real Yields and still elevated long positioning are expected to put further pressure on gold, which has completed a top below $1765, raising the prospect of a much more serious fall, per Credit Suisse.

See –  Gold  Price Analysis: XAU/USD to near the confluence support zone at $1,660-$1,670 – DBS Bank

Key quotes

“Gold maintains its tight inverse relationship with US Real Yields, which we expect to rise further, which should put further pressure on the yellow metal.”

“CFTC positioning data shows the net long from extreme levels is unwinding, but still in our view has scope to unwind further yet and potentially significantly so.”

“Gold has finally bowed to rising yields and the strengthening USD and key support at $1761 was recently cleared for the completion of a large top. The market has reinforced this top with a break below the 38.2% retracement of the 2018/2020 bull trend at $1726 and we look for a fall to $1670 next, then $1620/15.”  

“Resistance at the $1761 breakdown point now ideally caps to keep the immediate risk lower.”