Gold (XAU/USD) holds a near-term base and strategists at Credit Suisse see scope for a fresh test of resistance from its 200-day average at $1857. Rising US Real Yields, as well as a sideways USD, are likely to see strength capped here for now though.
Gold still holds a near-term base
“We look for a recovery back to $1835, potentially the 200-day average and downtrend at $1857/79, but with a fresh cap expected here for now.”
“Back below $1724/21 would see the basing effort quickly negated.”
“If this current phase is still a correction in a broader market and if the prior bull market behavior was to be repeated, this would mean a new high would not be posted until December this year at the earliest.”
“An eventual rise in US Real Yields should remain a headwind for Gold though.”