Gold price tested the $1,800 mark for the first time in over a month on Tuesday. Economists at Credit expect the yellow metal to eye the 200-day moving average (DMA) on a sustained break above 55-DMA at $1,792. 

A major “double top” continues to threaten

“A convincing break above the 55-DMA, currently seen at $1,792, would confirm further ranging in the 2-year range, with next resistance then seen at the even more important 200-DMA, currently at $1,842.”

“We continue to stress that a closing break below $1,691/77 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.”