Gold is under renewed short-term pressure but still remains in a broad range. Strategists at Credit Suisse expect the bright metal to test support at $1,616.

Gold to complete a large top on dip below $1,616

“We expect a test of the 38.2% retracement of the whole 2018/2020 uptrend around $1,724. Below there would the open the door for a test of the indicated $1,684/76 weekly lows, before the more important 50% retracement at $1,616, where we would expect a fresh floor again to be established to keep the market in a range. Failure to hold here though would complete a large top.”

“Above the intersection of the key 55 and 200-day averages at $1,847 would be seen to stabilize the market more meaningfully again.”