All trading involves risk. Losses can exceed deposits.

Gold takes tumble on stronger dollar

The Chicago PMI data for October wrong-footed the markets and has helped to give the dollar a boost. 

All trading involves risk. Losses can exceed deposits.

Gold, which has been under pressure all day as a result, reacted negatively but remains anchored around the key $1325/oz mark.

A rise to 65.9 for the Chicago business barometer against an expectation of 55.1 put the markets in a quandary. All markets, including gold, have recently been relying on the taper on/taper off sentiment as a driving force; decent fundamental data such as this has been something of an anomaly.

The 144-day moving average for gold has once again stolen the shine from the metal, and seen gold trade back from the $1360/oz resistance level. As long as we see the price close on a daily basis at or above $1325, then we can shrug the current development off as a correction. Any break, on the other hand, could re-open the $1300 level.

Spot gold chart

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.