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 continues to hold up above key support
Gold has once more returned to a crucial trendline support this morning. In a clear potential topping pattern, we are awaiting confirmation of a head and shoulders pattern with a break and hourly close below $1276-1278 support zone.
Yesterday saw yet another retracement from this area, with the 76.4% pullback hit on the nose.
As such, it is worthwhile awaiting a break to confirm this bearish pattern. Until we see such a breakout, another retracement higher could be on the cards, with $1288 the nearest key resistance level.