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 breakout falters at the first hurdle
Last week’s bullish breakout in gold failed to stick, with the creation of a double-top subsequently driving prices back below the crucial $1284 level. That level represents the pivotal price to watch out for today, as we could easily see the current resurgence falter at this highly notable level.
Given this recent weakness, accompanied by the double-top pattern, further losses seem likely in the short-term. This view holds unless price breaks back through the $1287 level. Support levels of note are $1280, $1273 (double top projection) and $1271. A closed hourly candle above $1287 would point towards a resurgence of the long-term bull trend, with $1300 and $1304 the next major resistance levels.