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.
Yesterday saw gold take another leg lower, as the wider retracement continues at pace after the trendline rejection earlier in the month.
The break below $1322 means we are now looking at a good possibility that this retracement will be break below $1305, which would point towards a deeper retracement of the June 23 low.
As such, while this market is clearly trending lower, it could be worth awaiting a potential break and closed hourly candle below $1305 to signal another round of selling towards $1280. Any rally will be looking towards £1322 and $1338 as key resistance levels.