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 rally approaching key resistance zone
Gold has worked out particularly well this week, with a rally from $1307 up to yesterday’s peak of $1345. We remain within a descending triangle on the daily timeframe and the two trendlines up ahead have the potential to send the pair lower once more, continuing this formation. Essentially, until we see an hourly close above $1352, then there is always the possibility of another move lower.
As such, look out for a break below the most recent swing low as a reversal sign, with an hourly close below $1331 providing the current support level to watch for a bearish outlook to come into play. Until that happens, the bullish short-term outlook remains, albeit with more caution.