Gold has rebounded further but still remains below the 200-Day Moving Average at $1,803. Therefore, strategists at Credit Suisse stick to their bearish bias.
200-DMA at $1,803 to cap further upside for now
“Gold has rebounded further and is now hovering solidly above the 55DMA at $1,680, hence questioning the validity of the large ‘double top’.”
“A break back below the 55DMA is needed to inject fresh downside momentum into the market again, with next supports seen at the recent YTD low at $1,614, before the 50% retracement of the whole 2015/2020 upmove seen at $1,560.”
“The 200DMA, currently seen at $1,803, is expected to cap further upside for now. However, above would open the door for a potential rise toward the $1,877 June high next.”