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.
With risk assets rallying across the board, gold has been given a big shove lower. The pullback in gold’s current uptrend from the December lows looks to have further to run, with $1264, and then $1239 the big levels to watch in terms of potential support.
The 200-day simple moving average (SMA) at $1253, and then the 50-day SMA at $1245 could also provide some support in any bigger move lower. A rally needs to clear $1276, and then break above $1284 to put the price back above the long-term descending trendline off the highs of summer 2016.