Gold has extended its defence of major support from the lows for the year and 38.2% retracement of the entire 2015/2020 bull market at $1682/71. However, strategists at Credit Suisse expect the yellow metal to stall its recovery at the $1808/1834 resistance zone.
Break below $1671 to mark an important change of trend lower
“Strength now faces a test of a cluster of resistances including its 55 and 200-day averages and July and August highs at $1808/1834 and we expect this to cap the rebound and for the risk to lower again in the broader range.”
“Only below $1671 though would mark a major top to mark an important change of trend lower. We would then see support at $1620/15 initially, then $1565/60.”
“Above $1834 would suggest a more important low may be in place, for a test of the June high at $1917.”