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 triangle leads to further losses
Gold continues to suffer, with the resurgence seen earlier in the week leading to yet another strong move lower upon the breakout of a symmetrical triangle. The fact we are now hitting new multiyear lows – on what seems like a daily basis – means support levels are hard to come by.
A crucial support level of note is represented at $1044, marking the 2010 low. However, ultimately the bearish outlook remains and we look for the creation of new lower highs and lows. This outlook remains unless we see a closed hourly candle above $1055, which would point towards some form of short-term recovery.