Gold is having a difficult time gathering further bullish momentum. Economists at Credit Suisse expect the yellow metal to stage a consolidantion phase.

Short-term momentum is turning lower

“Gold has stalled in the short-term just ahead of our tactical objective at the 78.6% retracement of the 2022 fall and April 2022 high at $1,973/98, with a fresh cap still expected here. Short-term momentum is also turning lower, reinforcing the case for a lengthier pause.”

“From a more medium-term perspective, only above the $2,070/72 record highs of 2020 and 2022 would suggest we are seeing a significant and meaningful long-term break higher, with resistance levels then seen at $2,300, then $2,500. This is not our base case for now though.”

“Support is seen at $1,897 initially, below which can see a pullback to the 55DMA, currently seen at $1,829.”