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 could see 61.8% retracement as support
Gold has broken below the $1240 mark, bringing with it a heightened chance of further downside. Given that break, we are now looking at potential retracements of the wider move up from $1195.
With that in mind, the 61.8% retracement is coming into play as support, which has been respected so far this morning. The continued creation of lower highs and lower lows on an intraday basis will be our guide for whether further downside is around the corner.
For now that means that as long as price remains below the $1242 mark, further downside is expected.