Gold is consolidating as expected after achieving the Credit Suisse flagged $2075 base case objective in August and whilst the bank maintains its long-term bullish view, their strategists think new highs are not likely until next year.
“Gold extends its correction following the move to our base case objective of $2075/80 in August for a fall to just shy of support at $1837 – the 23.6% retracement of 2020. We look for this to continue to hold to maintain the sideways range for now ahead of an eventual move above $1993 for a fresh look at $2075. An eventual move above here stays looked for a resumption of the core bull trend with resistance seen next at $2175, then $2300.”
“Below $1837 can see a deeper setback to $1765, potentially $1726 – the 38.2% retracement of the entire 2018/2020 bull trend and rising 200-day average. We do not look for weakness to extend below here. If seen though, this would significantly increase the risk the bull trend is over.”
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