Gold still remains trapped in the converging range of the past year and continues to hover at the sideways creeping 200-day average (DMA), currently at $1,805. Economists at Credit Suisse expect XAU/USD to retest the $1,691/76 area on a break under $1,759/54.

Break above $1,877 is needed to ease fears of a top

“Below $1,759/54 remains needed to clear the way for a retest of key price and retracement support from the lower end of the range at $1,691/76. Only below here though would see a major top established to mark an important change of trend lower, with support then seen at $1,620/15 initially, before $1,572/61.”

“A break above $1,877 is needed to ease fears of a top, but with a break above $1,917 needed to suggest we are seeing a more sustainable move higher, potentially back to the $2,075 record high.”