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 Bank S.A. 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.
The precious metal is trading at $1346, up 0.6%, as uncertainty in Ukraine is still fuelling demand. When it comes to the possibility of a war, traders are always going to be on the cautious side. And although there are no signs of an all-out conflict at the moment, worries are festering in the background. Since gold is seen as a quality investment, it is benefiting from the uncertainty surrounding the situation in Crimea.
Gold briefly broke through the $1350 level today, but it didn’t have the momentum to stay above it. The metal had taken a tumble on Friday after the US non-farm payrolls came in much higher than expected; we have managed to pull back the losses since then.
As Chris Beauchamp explained, the $1360 mark remains the key resistance level, and we are still on track for the 50-day moving average to cross the 200-day moving average, which is a bullish indicator.