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.
Golds breaks trendline, yet key support remains
Gold has seen a sharp move lower this week, following a break below both the 76.4% retracement and trendline support. This brings about a significant risk that second half could be a bit of a shocker for gold prices.
For a wider bearish outlook to come into play, we would need to see a break below the critical $1214 level. That would form the first weekly lower low of 2017. For now, we have seen a little rebound, yet the downtrend remains intact. Considering the proximity to that crucial $1214 support level, it could be prudent to await a break below for further shorts to be considered. Until then, we could see some further gains as the market takes a breather.