Gold could soar to $2,300 if it breaks the $2,070/$2,075 highs – Credit Suisse

Gold has started 2023 strong. The Credit Suisse strategists do not rule out a strong rise to the $2,300 area.

A break below $1,729 would be needed to push risk back down

“We look for further tactical gains to test the 61.8% retracement of the 2022 dip and June 2022 high at $1,876/$96, which ideally caps the upside for now. Should the strength extend outright, We see resistance at the 78.6% retracement and April 2022 high at $1,973/$1,998.”

“While broadly speaking this strength looks like a rally into a broader sideways range longer-term, if the rally extends above the 2020 and 2022 all-time highs at $2,070/$2,075, this would mark a significant breakout.” and longer-term higher, probably opening the doors towards $2,300 and beyond.”

“We see support initially at $1,824.50, then the 200 DMA at $1,780. Below $1,729, however, it is worth noting that the broader risk may lie with a further downside.”