Gold Price Forecast: XAU/USD sees a tiring short-term momentum picture – Credit Suisse
Gold has stabilized above the 100-Day Moving Average, reasserting its outperformance trend. Strategists at Credit Suisse analyze the yellow metal technical picture.
A break below $1,938 would open up a move back to $1,893
Gold has stabilized over the past week after the hold above the 100-DMA at $1,938. Although this is not an average we typically track, it did floor the market during the February setback earlier this year.
We still expect pivotal resistance at the $2,063/75 record highs posted in 2020 and 2022 will prove a tough barrier given the tiring short-term momentum picture, with a triple bearish momentum divergence still in place. This suggests further rangebound price action is the most likely outcome for the now. Post this phase, we believe the market will eventually move to new record highs.
Above $2,075 on a weekly closing basis would be seen to mark a significant break higher, opening up a move to our next core upside objective at $2,330/2,360. In contrast, a break below $1,938 would open up a move back to $1,893.
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FXStreet Insights Team
FXStreet
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