Gold is undergoing a sharp setback after being capped near exactly at its $2075 record high. However, strategists at Credit Suisse still expect the yellow metal to break above here towards the $2,285/2,300 zone.
Weakness seen as temporary while above $1,863
“Gold has been capped at its $2,075 record high but our bias is to view this as a temporary setback whilst support for the 55-day average at $1,863 holds on a closing basis.”
“We look for a sustained break above $2,075 in due course with resistance seen at $2,120 initially ahead of $2,167 and eventually our new core upside objective at $2,285/$2,300.”