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 retraces following breakout
The underlying strength in gold came out yesterday with the break and close through $1214, which subsequently sparked a rally to $1240.
We are now seeing that move retraced, yet this is likely to be a temporary move, before another move higher. As such, it seems prudent to look for bullish reversals at key support levels, such as $1217 and $1214.
Resistance levels in this case would be $1232, $1240 and $1263. We would need to see a move back below $1200 for out bullish view to be negated.