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 at key support area
Gold has been pulling back sharply over the past two days, yet has tumbled into a crucial support area, with an ascending trendline and 76.4% Fibonacci retracement in play. Given the failure to regain $1357, there is clearly a good chance that we will see another leg lower over the short-term.
However, for that to occur, we would need a break below $1330 to continue this countertrend sell-off. Given the respect of this trendline, it is certainly worth watching to see if the bullish long-term view can feed into the shorter term, with a bounce from here.
Alternately, should we see an hourly close below $1330, then longs around $1322 look attractive.