Gold experienced a sharp pullback on Thursday, but economists at Credit Suisse remain optimistic about its potential for an eventual retest of the record highs at $2,063/75.
According to their analysis, a major floor is expected to be found at the key rising 200-DMA (Daily Moving Average) level of $1,883. This is seen as a crucial support level for the precious metal’s price. Moreover, they predict an eventual retest of the significant resistance at the $2,063/2,075 record highs.
The economists at Credit Suisse maintain their long-held view that a break to new record highs is likely to occur later in the year. If this materializes, it could pave the way for a further upward movement to $2,150, followed by a potential target of $2,355/65.
However, they also caution that a weekly close below $1,883 would reinforce the longer-term sideways range for gold. In such a scenario, the price might face a decline towards the support level around $1,810/05.
Relevance to South Africa
As a country rich in gold resources, South Africa has a keen interest in the global gold market. The forecasts and analysis provided by Credit Suisse regarding gold’s potential movement are crucial for investors, traders, and policymakers in the country.
South Africa’s economy has a historical relationship with the gold industry, and fluctuations in gold prices can have significant implications for the nation’s financial landscape. Gold remains a vital commodity for South Africa’s exports and economic growth.
Moreover, the predictions for gold reaching new record highs and the possibility of further price movements could influence investment decisions and strategies within South Africa. Investors in the country should closely follow these projections to make informed choices about their gold-related assets.
Overall, the Credit Suisse’s gold price forecast is highly relevant to South Africa, given the country’s historical ties to the gold market and the potential impact on its economy and investment climate. As global economic conditions evolve, the South African gold sector will continue to be affected by international developments and price trends.