Gold is breaking lower following the higher-than-expected US inflation data. A dip under $1,691/76 would turn the risks lower over at least the next 1-3 months, strategists at Credit Suisse report.

A major top continues to threaten

“We continue to stress that a closing break below $1,691/76 would be sufficient to complete a large ‘double top’, which would turn the risks lower over at least the next 1-3 months. We note that the next support should this top be triggered is seen at $1,618/16, then $1,560 and eventually $1,451/40.”

“Only a convincing break above the 55-day average at $1,746 would confirm further ranging in the 2-year range, with next resistance then seen at the even more important 200-day average, currently at $1,833.”

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