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.
Gold stages a breakout
We may well have seen the breakout for gold after months of indecision. The price has charged through the downtrend line from the April highs, closing above $1215 and crucial resistance.
Some weakness would be possible, even welcome, if it allows fresh longs to hop on board, with dips towards previous resistance (now support) at $1215 and $1205 possible. Gold seasonality is strong here into year end, while the small net short positions among speculators, according to Commitment of Traders (CoT) data, could combine to drive the price higher over the medium term.