All trading involves risk. Losses can exceed deposits.

Gold glides sideways

Gold’s lethargic move sideways continues as it desperately needs some stimulus to break it out of its slumber.

All trading involves risk. Losses can exceed deposits.

I have been saying for over a week that unless gold was to close below the $1278 level I would remain long of the precious metal. Nothing since has given me reason to change that stance.

The previous catalysts for move – Ukraine and physical demand – have both been quiet for the last few days, and we have seen volumes drop and volatility dwindle.

One area of intrigue today has been the £26 million fine that Barclays have received from the FCA. This has come about due to the bank’s inability to properly manage its conflicts of interest when dealing on the London gold fixing; one of Barclay’s traders responsible for the 3pm gold fix in London recently manipulated the system so that a particularly large option would not be triggered. This is one specific case, but the gold bugs will no doubt seize on this as an example of the manipulation that they see as being endemic in gold.

I would continue to hold a long position in the yellow metal, and only a close below $1278 would see me reversing this view.

Spot gold chart

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