Gold: Eventual move to new record highs to test the $2000 mark – Credit Suisse

Gold stays on course for a move to new record highs after breaking above the $1800 level reinforced by the ongoing trend lower for US Real Yields. Strategists at Credit Suisse expect the yellow metal to test the $2000 mark.

Key quotes

“Gold has resumed its core bull trend and with resistance at $1796/1803 conclusively cleared and with a fresh albeit small bullish continuation pattern in place we stay bullish for a test of the $1921 record high.” 

“Bigger picture, we continue to look for an eventual move to new record highs, with resistance then seen next at $2000, then $2075/80.”

“Support at $1790 now ideally holds to keep the immediate risk higher. Only back below $1671 though would set a near-term top.”

“Falling 10yr US Real Yields remain seen as a core driver for the gold rally and we continue to look for a move here back to the lows, and potentially even lower.”