Gold maintains a top and although key retracement support is holding, further weakness is expected in the second quarter, as reported by the Credit Suisse analyst team.
See: Gold, silver to plummet by year-end to $1600 and $20 respectively – CE
Key quotes
“Gold maintains a top below $1765/61 and we view the current bounce as temporary and we look for a fresh fall to retest $1682/71 – the 38.2% retracement of the entire 2015/2020 bull market and the recent and June 2020 lows.”
“With US real yields and the USD expected to strengthen further our bias stays to the downside in Q2 for a move below $1682/71 with support then seen next at $1620/15 and ultimately the ‘measured top objective’ and 50% retracement at $1564/61. Whilst an overshoot to $1510 should be allowed for, our bias would be to start to look for a floor here.”
“Resistance at the $1761/65 breakdown point ideally caps to keep the immediate risk lower. Above 41816 though is needed to see the top negated.”
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