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 to trendline resistance
Gold sold off sharply following the creation of a double top yesterday, yet no sooner had we dropped back into the $1285 region, then we rallied back up to trendline resistance. The $1295 level seems to be regained as a key support level, with price once more rallying into trendline resistance.
Up ahead, the $1300-1307 zone is a crucial region of resistance which if broken could lead to substantial gains. However, for now we are waiting to see if gold can post an hourly close above $1304, which would point towards a likely rally through $1307.
Ultimately, we would need to see a convincing break through $1307 to point towards a continuation of the recent gains. To the downside, watch $1295 as near-term support.