Gold has confirmed a major double top. Strategists at Credit Suisse expect the yellow metal to suffer further weakness.

Break above 55-DMA at $1,734 needed to alleavite downside pressure

“Gold below $1,691/76 has confirmed a large ‘double top’, which turns the risks lower over at least the next 1-3 months, with XAU/USD also now hovering clearly below both the 55-day and 200-day averages, currently seen at $1,734/1,831.” 

“We note that the next support is seen at $1,618/16, then $1,560 and eventually $1,451/40.”

“Only a convincing break above the 55-DMA at $1,734 would ease the pressure on the precious metal, with next resistance then seen at the even more important 200-DMA, currently at $1,831.”