This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Gold rallies into major resistance zone
Gold has broken sharply higher overnight, following on from yesterday’s Federal Open Market Committee (FOMC) meeting. This has taken us back into a crucial resistance zone.
A break above the $1292 resistance level is needed to continue the creation of higher highs. Should that occur, we would be looking towards the $1296 resistance zone, which if broken, would bring a bullish picture to the longer term. As such, whether we can break through the $1292-$1296 zone will be a major determinant for whether this market becomes bullish for both the short and medium/long term.