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.
Gold is trading at $1303, broadly unchanged on the day, as the reversal of the flight to quality and fears of tapering from the Federal Reserve are keeping the precious metal close to the key $1300 level.
The increased anxiety in eastern Ukraine drove the metal above the $1330 mark at the start of the week, and as there have been no further developments we have seen some traders take their money off the table.
The increase in the US consumer price index yesterday sparked fears the US would reduce its stimulus package. The bond buying scheme by the US central bank has helped the jobs market, but now that the cost of living is increasing it could be an indication of tapering.
The $1300 level has been a major support level for gold, as I previously mentioned. If hostilities rise again between Russia and the west, gold could move towards the 50-day moving average of $1326.