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 a resurgence
Gold is breaking higher this morning, following on from the sell-off seen earlier in the week. The difficulty here is that we are at the whim of Mr Kim Jong-Un and should we see another North Korean nuclear test, it would spark a rise in gold. All things remaining equal, this market looks like it could be retracing a part of the $1358-$1322 sell-off before we move lower once more.
However, given the bullish bias caused by the possibility of another test, the bullish short-term picture looks like a good bet on an intraday basis. It seems like we could be retracing towards the $1345-$1350 mark, and given the potential for a positive surprise on top of that, it makes sense to take longs. As such, a short-term upside into $1345 seem attractive, where a break below $1328 would negate that bullish short-term view.
.jpg)
