Gold to consolidate amid the long-term trend higher – Credit Suisse

Gold is expected to extend its sideways phase within its long-term uptrend. Strategists at Credit Suisse see the yellow metal consolidating above the $18877/37 level neighborhood where there is a cluster of supports.

Key quotes

“Gold continues its expected consolidation following the move to our base case objective of $2075/80. Whilst we continue to see the long-term trend higher, reinforced by falling US Real Yields and a falling USD, our immediate bias remains for further consolidation above a cluster of supports at $1887/37, which includes the 23.6% retracement of the rally from the 2018 low. Should weakness extend, we would see scope for a deeper setback to $1765, potentially $1726.”

“We look for an eventual move above $2075 with resistance seen next at $2175, then $2300. Whilst we would look for a fresh consolidation at this latter level, a direct break can see potential trend resistance at $2417, with scope seen for $2700/20 over the longer-term.”