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.
Does a potential unwind await gold?
Having briefly touched $1200 yesterday, a modest gold pullback is underway. A continuation of this move takes the price down to $1170 and then $1148, the lows of 5 February.
Given the parabolic move in gold prices since the beginning of February, the possibility of an ugly unwind looms large, A pullback all the way to $1148 would still leave gold in a strong uptrend, and, crucially, above the monthly downtrend line that it broke last week.