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 breaks higher once more
As is typically the case, widespread selling in the equity markets has driven gains in gold, with a break through yesterday’s high of $1253. We are clearly creating continued higher highs and higher lows, which is expected to continue.
However, given the significant rally in play, it makes sense to await another retracement before looking for longs once more. The long-term picture is bullish, with recent months creating a symmetrical triangle following a sharp appreciation.
As such, this short-term bullish trend fits in with the bigger picture and provides confidence that further upside is likely. Resistance levels of note are $1263 and $1270, with support at $1244 and $1238.