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 back into triangle top
Gold saw a sharp appreciation last week, with a swift rally into the 76.4% retracement. However, this bullish outlook is now coming into question and we could be set for a period of weakness.
The overall view for gold is bullish, yet we would need to see a break through $1352 to signal an end to the consolidation that has been a feature of gold over recent months.
Current price action is looking like potentially creating a topping pattern, with an hourly close below the $1331 support sparking a bearish outlook. Could we be set for yet another week where we simply rotate between the boundaries of this pattern?