According to strategists at Credit Suisse, gold (XAU/USD) needs to hold below the $1755/65 neighborhood to maintain its immediate downside bias.
The extreme long positioning in gold continues its sharp unwind
“Gold has retested and again held key support at $1682/71 – the 38.2% retracement of the entire 2015/2020 bull market and the recent and June 2020 lows. Resistance at $1755/65 needs to cap to suggest this is just a temporary hold ahead of an eventual break in due course, with support then seen next at $1620/15 and ultimately the ‘measured top objective’ and 50% retracement at $1564/61.”
“Above $1765, the yellow metal would see a near-term base established for a deeper recovery to $1855/75, but with a fresh cap looked for here.”
“CFTC Net Non-Commercial long positioning continues to unwind sharply from its extremes and the market is seen in a much cleaner and neutral positioning state.”
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