Gold is expected to re-confirm its “double top.” Thus, strategists at Credit Suisse expect further weakness during the fourth quarter.

Only a convincing weekly close above $1,724 would ease the pressure on gold

“Gold below $1,691/76 completed a large ‘double top’ but is now hovering slightly back above this level. However, we expect gold to come under renewed pressure during Q4, also due to the fact that it remains still clearly below the falling 200-day average, currently seen at $1,824. We note that the next support is seen at $1,620/14, then $1,560 and eventually $1,451/40.”

“Only a convincing weekly close above the 55-day average at $1,724 would ease the pressure on the precious metal, with next resistance then seen at the even more important 200-day average at $1,824, which we would expect to cap at the very latest.”