Gold: Move above $1993 to end the consolidation phase – Credit Suisse

Gold (XAU/USD) consolidation extends as expected by strategists at Credit Suisse but with new highs eventually expected next year. On Wednesday, the yellow metal’s rebound remains capped below the $1900 mark, consolidating Tuesday’s 2% slide.  

Key quotes

“Gold extends its consolidation/correction following the move to our base case objective of $2075/80 in August but is still holding flagged support at $1837, the 38.2% retracement of the rally from March. We look for this to continue to hold to maintain the sideways range ahead of a break above $1993 for a fresh look at $2075.” 

“An eventual move above $2075 stays looked for a resumption of the core bull trend with resistance seen next at $2175, then $2300, although we continue to believe this will not be seen until next year.”

“Below $1837 can see scope for a deeper setback to $1765, potentially $1726, but with this expected to hold.”