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Strategists at Credit Suisse remain long-term gold bulls and a potential bullish “wedge” continuation pattern looks to be forming to add weight to this view.

Key quotes

“Gold extends its consolidation from our $2075 target hit in August and we maintain our core view this is a temporary and corrective pause in the broader uptrend. Indeed, price action is beginning to increasingly look like a bullish ‘wedge’ continuation pattern, adding weight to our view.” 

“Key support stays seen intact at $1837 – the 38.2% retracement of the 2020 rally – and our bias remains for this to continue to hold. Above $1933 would now suggest the “wedge” has been completed for strength back to $2016, then the $2075 high.” 

“Big picture, we continue to look for $2300.”

“Below $1837 would curtail thoughts of a “wedge” and would suggest we should see a deeper setback to price and 200-day average support at $1775/65.”