Gold Price Forecast: XAU/USD to struggle in the face of rising yields and stronger USD – Credit Suisse

Gold (XAU/USD) remains entrenched in its range as the yellow metal extends its consolidation beneath the July and August highs at $1832/34 – but with the broader risk seen to the downside, according to strategists at Credit Suisse. 

Rising US Real Yields and a strengthening USD to continue to weigh on XAU/USD

“Although downward pressure is seen increasing, only below $1691/77 would mark a major top for an important change of trend lower, with support then seen at $1620/15 initially, before $1565/60.”

“Only a break above $1834 would be seen to complete an in-range base to clear the way for a deeper recovery to $1860, then $1917.”

“Gold arguably already moved ahead of the move higher in Real Yields, however we still see scope for 10yr US Real Yields to rise further to retest their highs seen earlier this year, which would suggest XAU/USD is likely to stay under pressure and with the base in the USD also likely to prove a headwind.”