FXStreet reports that gold has seen its expected move to new record highs and strategists at Credit Suisse are starting to see signs of temporary overextension. Therefore, they expect the yellow metal to experience a consolidation phase before resuming the uptrend towards the $2000 psychological mark.

“Gold strength has accelerated dramatically again and we have now seen the long-looked for move to a new record high above $1921. With near-term signs of overextension now showing a pullback/consolidation should clearly be allowed for after such a strong and headline-grabbing move.” 

“Our bias remains though to view weakness as corrective only and we maintain our core bullish bias with resistance then seen next at the psychological $2000 barrier, before what we see as its next tougher resistance test at Fibonacci projection resistance at $2075/80. Whilst our bias would be to look for a consolidation phase to unfold from here, a direct break can see resistance at $2175/80 next, then $2295/2300.”

“Support for a pullback is seen at $1804/1796, then $1765, with $1671 ideally holding.”

FXStreet reports that in an interview with Kitco News Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, said that the gold is not yet overvalued fundamentally and that there is more room for the upside heading into the US Presidential elections due this November.

“Recommend investors look to buy gold on dips as the price could continue to hover around $2,000 through the U.S. November elections.”

"In the short term, we have gold about 21% above its 52-week mean, that's the most since the peak in 2011. You don't want to be the first buyer at these levels. Anytime gold gets this high above its 52-week average, you got to expect consolidation."

“Gold will need to get “stupidly” expensive before this rally ends and that could mean prices above $4,000 an ounce.”

"Basically, after 2008, gold dropped around $700 and then it rallied around three times to the peak in 2011. So just a simple rhyme of history means we get to near $4,500 and it's about time. You just have to look at debt to GDP, look at central bank balance sheets, and they're just on an upward trajectory."

"Investors should continue to watch equity markets. With bonds providing investors with no yield, a bear market in equities would drive gold's safe-haven appeal, he said.

"Now the rock is beating stocks. There's a sense in the market that the bull market in stocks is over… and gold should take off. That, to me, is the next big trade."