All trading involves risk. Losses can exceed deposits.

Gold awaits Syria strategy from US

Before the US Congress has an opportunity to discuss its views over intervention in Syria, gold is unlikely to stray too far from its current levels.

All trading involves risk. Losses can exceed deposits.

Having worked so hard to break above both the 50 and 100 day moving averages, the bulls would be disappointed if they were to give up this ground before a US congressional resolution to the turmoil in the Middle East. For the short term at least, supply and demand are probably not the major driving forces behind a move for the precious metal; instead those are fear and the flight to security.

Some traders will be heartened to remember that the last time gold tried to break through the resistance of the $1400 level it then charged up to and beyond the $1900 level. The biggest difference to consider is the general perception of risk and the fact that the markets are becoming a more blasé towards negative news as it becomes increasingly regular.

There has been a shift in the buying of US futures which have risen by 0.6%, while the percentage of selling has shrunk by 8.6%. This may be an indication that higher gold levels will be hit.

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.