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 weakening from Fibonacci resistance
Gold has shown some initial signs of weakness from the crucial 76.4% retracement this week, with yesterday’s rally into the $1274 mark being met by initial selling. The short-term picture has not yet shown any bearish reversal signals, but with the longer-term view highlighting the potential for a bearish reversal, it makes sense to be bearish unless we manage to break up through the $1296 mark.
Watch out for trendline and simple moving average (SMA) support to the downside, where a break below those levels and $1262 mark would provide a greater confidence of downside.