The information 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 and as such is considered to be a marketing communication.
Gold prices endured a volatile time last week but today the price of the yellow metal is advancing, helped by headlines emerging from Crimea.
The price probed the $1330 level early in today’s session, but as the day continued the buyers returned. Reports of gunfire at a Ukrainian base in the Crimean peninsula gave further upward impetus, which means that we are now looking at the $1353-$1355 area from last week.
The observation from the previous week, that $1360 remains the key resistance level, remains intact. Crucially, the price is not overbought on a daily chart, and the 50-day moving average is still on course to cross above the 200-DMA; the last upward crossover of these was back in September 2012. A clearance of $1360 would signal a possible retest of the $1377 area from September 2013, with a fresh medium-term high in sight around $1430.