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 tumbles despite initial gains
Gold saw a strong gap higher at the open, given the perceived rush to safety. However, this has come to an abrupt end, with a sharp move lower upon hitting the 76.4% Fibonacci retracement.
Given the downtrend in place over the past week, we would need to see a break through $1244 to say this selloff is over. As such, despite the expectation of gains in line with safe haven demand, gold continues to look weak, driven by the negative trade seen this morning.