Gold consolidation extends as expected with the yellow metal trading around the $1900 mark, but with new highs eventually expected, according to strategists at Credit Suisse.
Key quotes
“Gold extends its consolidation/correction following the move to our base case objective of $2075/80 in August, but is still holding flagged support at $1837, the 38.2% retracement of the rally from March. We look for this to continue to hold to maintain the sideways range ahead of a break above $1993 for a fresh look at $2075.”
“An eventual move above $2075 stays looked for a resumption of the core bull trend with resistance seen next at $2175, then $2300, although we continue to believe this will not be seen until next year.”
“Below $1837 can see scope for a deeper setback to $1765, potentially $1726, but with this expected to hold.”
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