Technical analysis: key levels for gold

Gold continues its ascent, following a deep intraday retracement. This points towards further upside to come.

Gold
Source: Bloomberg

Gold continues to gain ground

Gold is moving higher yet again following a deep retracement yesterday. The fact that yesterday’s retracement didn’t fall below $1262 was key to continuing this bullish uptrend, and as such, further gains seem likely.

Should the price break above $1269, then any pullback would have to break below $1265 to negate the uptrend. For now, pullbacks are there to be bought into, rather than being indicative of a reversal. However, if the price does break the most recent swing low, then this would be a more worrying signal.

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.