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 breaking lower after recent gains
Gold has negated its recent recovery, with the price falling back below the $1273 mark to complete a lower high and lower low. With the price subsequently falling back below $1272, it looks like we could be heading back to trendline support once more. The key to whether this is a wider pullback before we move higher, or a beginning of a wider move lower is whether we break below $1265.
For now, the price seems to have respected the 76.4% retracement. However, should we see a break back below $1265, then the price of gold would look susceptible to significant further downside.
.jpg)
