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Gold broke to new highs last week, before reversing sharply lower on Friday. Economists at Credit Suisse stay biased towards an eventual move to new record highs above $2,070/75.

Gold capped for now below resistance from its $2,070 and $2,075 record highs

“With a growing bearish divergence still in place, we look for the $2,070/2,075 highs to remain a formidable barrier for now for further sideways consolidation.”

“Support is seen at $1,969 initially, then $1,950/48, which includes the 55-DMA, which we would look to hold if reached.”

“Post the current ranging phase, we believe the market will eventually move to new record highs, supported by lower US Real Yields. Above $2,075 on a weekly closing basis would be seen to mark a significant break higher, opening up a move to our first core upside objective at $2,330/2360.”