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Gold is still expected to see a lengthier consolidation within its long-term uptrend. Strategists at Credit Suisse see a slide to $1765 if the weakness extends in the short-term but they expect an eventual rise above $2075.

Key quotes

“Gold continues its expected consolidation following the move to our base case objective of $2075/80. Whilst we continue to see the long-term trend higher, reinforced by falling US Real Yields and a falling USD, our immediate bias remains for further consolidation above a cluster of supports at $1897/37, which includes the 23.6% retracement of the rally from the 2018 low.” 

“Should weakness extend, we would see scope for a deeper setback to $1765, potentially $1726.” 

“We look for an eventual move above $2075 with resistance seen next at $2175, then $2300. Whilst we would look for a fresh consolidation at this latter level, a direct break can see potential trend resistance at $2417, with scope seen for $2700/20 over the longer-term.”