Established in 1974
185,800 clients worldwide
Over 15,000 markets

Gold struggles with $1300

Gold is trading just below the $1300 mark as profit-taking prevents the metal from breaking through the level.

Gold is trading at $1299, down 0.3%, after the precious metal hit a one week high on Friday following the non-farm payrolls report. The softer-than-expected jobs report boosted gold, as traders felt the Federal Reserve would keep the stimulus package for a prolonged period of time. Gold has struggled with the $1300 mark and the release of the Fed minutes on Wednesday 7pm (London time) has traders fearing the worst.

Recently, Fed members James Bullard and Dennis Lockhart suggested interest rates in the US could increase in the 2015. If we hear a similar hawkish sentiment on Wednesday, we could see gold head towards the 100-day moving average of $1279.

Tensions are rising in Ukraine, with more pro-Russian demonstrations in the east of the country. If the relationship between Moscow and the west deteriorates, gold could be driven higher because of the flight to quality factor. This could make the 50-DMA of $1322 a possible target.

Spot gold chart

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.