Gold: Looking for new highs – Credit Suisse

Gold has achieved  the ‘measured base objective’ at $1700/05, but analysts at Credit Suisse stay bullish on the yellow metal.

Key quotes

“Gold has seen an exact move to our long-held ‘measured base objective’ at $1700/05. Whilst we suspect further consolidation can emerge here, as we have repeatedly highlighted our core outlook stays bullish and we look for a move above $1705 in due course, with resistance next at $1796.” 

“Big picture, we continue to look for new highs. Below key price support at $1453/46 is needed to change this view as this would mark a top, turning the risk lower as well as ending our long-held bullish outlook.”

“Extreme long positioning in gold is starting to unwind, which we see as constructive for our bullish view.”