Gold price (XAU/USD) is in the 2nd day of a corrective decline, after a stellar move that has taken it from the $1815 support level to the $1900 resistance. Analysts at Credit Suisse believe that gold price could advance further to retest the current all-time high of $2075, but only if the barrier at $1959/1966 is broken. This follows a similar analysis by DBS Bank that foresees gold price at least attaining the $1950-$1967 resistance zone. This analysis follows the establishment of gold price above the 200-day moving average at $1843.
But Credit Suisse is not predicting a straight hit towards that level. Ideally, they would love to see a retracement to this 200-day moving average, with a bounce that cements the strength of this support and provides a pivot for the move upwards. Some consolidation beneath $1959/66 is expected. The bank’s view only changes if the price declines below $1764, in which case a retest of $1682/1671 could be in the offing.
Technical Levels to Watch
Gold price on the daily chart has hit resistance at 1900.95. With the formation of a pinbar at that resistance, price is now in a corrective decline. The target for this decline is the 1881.68 price level, now functioning as a support. Below this level, additional support is seen at 1860.77.
On the other hand, a push towards 1930.88 and higher targets requires a break of the 1900.95 price resistance. The 4 November 2020/8 January highs at 1917.00 serve as a potential pitstop. Ascension to future targets at 1960 and above requires bulls to take out 1930.88, pending when the barrier at 1900.95 gives way.