Categories: Markets

Gold Price Forecast: XAU/USD could drop to $1,451/$40 if it closes below $1,691/$76 – Credit Suisse

Gold Price Forecast: XAU/USD could drop to ,451/ if it closes below ,691/ – Credit Suisse

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