This information has been prepared by IG, a trading name of IG Australia Pty 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 continues recent downtrend
Gold managed to fall further, thanks to the risk-on mode set by yesterday’s European Central Bank (ECB) meeting. We have now seen the price break below the 76.4% retracement, with the price subsequently contending with an ascending trendline dating back to July 2016.
A break below that trendline would then look towards $1260 as the next major level in question. For now, there is a chance we could see a short-term rebound. However, unless we break through $1282, another leg lower remains the likeliest eventuality.
.jpg)
