After the steep wave of buying from mid-March, the gold price reached the striking overall resistance at USD 1,760 and turned south in May. This correction phase has continued so far, but the bulls recently stopped it at USD 1,670 and started a new wave of buying.
As the website fikrikadim.com reports, the Swiss-based investment bank Credit Suisse has raised its price estimates for gold and predicted that a weakening of the US dollar and expectations of financial stimulus from governments will sooner or later lead to inflation.
Resistance in the price
Last week, the smaller resistance at USD 1,715 was exceeded and the value was bought for a short time via a short-term downtrend line. The bulls should now use this momentum to attack the $ 1,760 mark. Above that, a new rally could lead to $ 1,800 and then to the target at $ 1,850.
The bank raised its average third-quarter gold price forecast from $ 1,560 an ounce to $ 1,750 an ounce. In the fourth quarter, the price is now expected to be $ 1,775 instead of $ 1,600 as before.Average price expectations for 2021 continued to rise from $ 1,600 an ounce to $ 1,800. The estimates could even be exceeded if US Treasury yields fall below 100 basis points, the bank says.