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.
Gold’s efforts to break higher have failed to convince traders of a shift in sentiment. General selling pressure has dissipated, and the broadly sideways movement of the precious metal is seeing it edge closer to a longer-term downward trend. Gold flirted with breaking this trend a couple of times at the tail-end of last year and the beginning of 2013, but these efforts have ultimately been far from convincing.
With the last weeks’ worth of US data having now been digested, markets are still some way short of a consensus as to if or when the US Federal Reserve will start to taper. The considerably better-than-expected non-farm payrolls caught the markets by surprise, and the reaction was seen in equity markets as well as gold.
Year-to-date this has been a poor year for gold’s price performance, as at present the price has dropped by 24% and is experiencing its worst performance for over thirty years.
Trading volumes are set to be thinner today across the board, and as such we could see a little more volatility in the metal than normal.