Gold has rebounded. Nonetheless, with a large “double top” in place, Credit Suisse’s core outlook stays bearish.

Gold to come under renewed pressure again

“Gold has rebounded over the past week but with a large ‘double top’ in place below $1,691/76 this is seen as a temporary rebound and we expect Gold to come under renewed pressure again in due course.” 

“Support is seen at the $1,614 recent low, below which should reassert bearish pressure again with support then seen next at $1,560 and eventually our core objective at $1,451/40.”

“Only a convincing weekly close above the 55-day average at $1,680 would ease the pressure on the precious metal, with next resistance then seen at the even more important 200-day average, currently at $1,805, which we would expect to cap at the very latest.”