Gold: Corrective decline to find support at $1837 – Credit Suisse

Gold extends its decline below $1900 but the yellow metal weakness stays seen as a corrective by the Credit Suisse analyst team. 

Key quotes

“Gold extends its consolidation/correction following the move to our base case objective of $2075/80 in August for a test of a cluster of flagged supports at $1897/37, which includes the 23.6% retracement of the rally from the 2018 low. We look for this to continue to hold to maintain the sideways range. Should weakness extend though, we would see scope for a deeper setback to $1765, potentially $1726.” 

“Above $1993 is needed for a fresh look at $2075. An eventual move above here stays looked for a resumption of the core bull trend with resistance seen next at $2175, then $2300.”