Gold below $1,691/76 has confirmed a large double top. Therefore, strategists at Credit Suisse have changed their medium-term technical view on XAU/USD to negative.

Only a convincing break above  $1,732 would ease the pressure

“Gold has recently broken below its two-year lows and the 200-week moving average at $1,691/76, marking the formation of a large ‘double top’ and we hence have changed our medium-term technical view on gold to negative.” 

“We look for further deterioration to take place from here, with support seen at $1,618/16 initially. A close below here would then be seen to clear the way for a move to the 50% retracement of the whole 2015-2020 upmove at $1,560, a sustained break below which would open the door to extend the decline to the late 2019 and 2020 price lows as well as the 61.8% retracement at $1,451/40.” 

“Conversely, only a convincing break above the 55-day moving average, currently at $1,732, would ease the pressure on the precious metal, with next resistance then seen at the even more important 200-day average, currently at $1,830.”