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 uptrend remains intact
The uptrend in gold is still clearly in play, as highlighted by yesterday’s spike higher upon the release of the FOMC announcement. A subsequent pullback this morning has brought us back towards yesterday’s low of $1115. Given that we have seen such a clear trend in play recently, it seems likely we will see another move higher from here.
As such, a bullish view remains, for a move back towards $1128 and $1132 levels. It is worthwhile noting we are approaching a crucial long-term descending trendline which forms the top of a multi-year falling wedge. Thus this rally could run out of steam in the near future. Nevertheless, a bounce today seems highly likely and the bullish bias remains unless we see reversal signals.