Gold extends its consolidation beneath the July and August highs at $1832/34. In the view of strategists at Credit Suisse, XAU/USD would suffer a significant drop on a break below $1691/77.
XAU/USD needs to surge above $1834/49 to enjoy a substantial recovery
“Although downward pressure is seen increasing, only below $1691/77 would mark a major top for an important change of trend lower, with support then seen at $1620/15 initially, before $1565/60.”
“Only a break above $1834/49 would be seen to complete an inrange base to clear the way for a deeper recovery to $1917.”
