Gold remains below its $2,070/2075 record highs and has started a short-term consolidation. A sustained move above $2,000/10 is needed to reinvigorat upside pressure, economists at Credit Suisse report.
XAU/USD could see further weakness on failure to defend 55-DMA
“A sustained move beyond $2,000/10 stays seen needed to clear the way for a retest of long-term resistance from the $2,070/75 record highs of 2020 and 2022. Whilst this should clearly be respected, a clear and sustained break higher would be seen to open the door to a move to $2,300 next.”
“Ideally, the 55-DMA, currently seen at $1,891, floors the market now. If this breaks, we could see further weakness towards the recent range low at $1,805, before the crucial 200-DMA, currently seen at $1,781, which we would once more expect to provide a floor.”