This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Continued moves lower for gold from long-term resistance
Gold is moving heavily lower this week, with the fall below $1327 completing a head and shoulders formation following a move into the long-term resistance level of $1357.
This points towards further downside to come. However, it is worthwhile noting that with a bullish wedge forming, there is a chance that we will soon see the price break higher to post a wider retracement before selling off once more. The break above $1319 would signal the beginning of such a move, with the resulting Fibonacci being drawn from the $1346 peak. Until then, further downside is likely over the short term.
.jpg)
