Gold to extend the consolidation phase ahead of new highs – Credit Suisse

Gold consolidation extends as XAU/USD continues to trade within its month-long range play between $1850-$1950, but with new highs eventually expected as the yellow metal holds the $1837 support, strategists at Credit Suisse apprise.

See: Gold needs to clear the $1,973 September high to resume the uptrend – Standard Chartered

Key quotes

“Gold extends its consolidation/correction following the move to our base case objective of $2075/80 in August, but is still holding flagged support at $1837, the 38.2% retracement of the rally from March.” 

“We look for the $1837 support to continue to hold to maintain the sideways range ahead of a break above $1993 for a fresh look at $2075. An eventual move above here stays looked for a resumption of the core bull trend with resistance seen next at $2175, then $2300, although we continue to believe this will not be seen until next year.”

“Below $1837 can see scope for a deeper setback to $1765, potentially $1726, but with this expected to hold.”