Rising real yields should put pressure on gold. In the view of strategists at Credit Suisse, the precious metal may be in the throes of constructing a large top.

Resistance at $1,877 is expected to cap

“Our base case remains that we are close to a peak in inflation expectations and 10-year US Real Yields are in the process of building a large and important bearish ‘wedge’ reversal. If our view is correct, it would suggest gold may in fact be forming a large and significant top.”

“The immediate risk is seen lower for support next at $1,759, removal of which can see a retest of long-term pivotal support at $1,691/77. Beneath this latter area at any stage would in our view mark a major top.”

“Resistance at $1,877 is now expected to cap but only above $1,917 would suggest we are seeing an important turn higher.”