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 below key support level
Gold has retraced lower this week, with yesterday seeing a break below both the $1351 and $1335 support levels. With that in mind, there is likely to be further downside to come despite the current bounce.
The next notable swing high is around $1358, which would need to be broken to return the bullish bias of the medium-term. However, for the short-term, it seems likely that we will see further losses, with the 76.4% retracement (also at $1351) the most interesting resistance level in view.