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 showing signs of potential reversal
Gold has been consolidating around the confluence of trendline and 61.4% Fibonacci support, coming off the back of a drop below the notable $1303 level. Looking at recent price action, we are seeing a host of indecision candles with long, lower shadows.
With the wider trend showing higher lows since the beginning of 2016, there is a strong chance this current short-term period of downside was going to turn higher once more, rather than break below $1236. As such, watch for a potential bounce from here, where a break below the $1280 low from yesterday would negate hopes of a bounce from this level.
.jpg)
