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.
The catalyst for gold’s fall today looks to have been created by the monthly US core CPI figures which came in stronger than expected, as well as the encouraging drop in US unemployment claims, both of which point towards an improving economic picture from the US. The standout figure has come from the US Empire State manufacturing index, however, which has hit levels not seen since May 2012.
Over the last month, the latest reports about Ukraine have gone a long way towards dictating the gold price. As things have deteriorated, market fears have increased, and fresh buying of the precious metal has ensued. The longer that this continued the less reactive markets have been.
I remain of the opinion that, as long as the gold price remains above $1280 then we will see a fresh test of the top end of the range around $1330. Only a close above here would open up the possibility of further gains.