Gold price is breaking lower after higher than expected US inflation data. A drop below $1,691/$76 would put risks to the downside for at least the next 1-3 monthsas reported by Credit Suisse strategists.
A major ceiling continues to threaten
“We continue to insist that a break below $1,691/76 would be enough to complete a large “double top”, which would put risks to the downside for at least the next 1-3 months. We note that the next support should this double top be triggered is seen in the $1,618/16 then in the $1,560 and finally in the $1,451/40.”
“Only a convincing break above the 55-day SMA at $1,746 would confirm a further swing into the 2-year range.with the next resistance then seen at the even more important 200-day moving average, currently at $1,833.”
Source: Fx Street