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.
Bullish gold outlook remains despite pullback
Gold has seen a sharp pullback overnight, following a downside break from a symmetrical triangle formation. Price has not broken below the $1346 support level which means we remain within an uptrend. As such, another leg higher seems likely from current levels.
Given that price is currently around the 76.4% retracement, it makes more sense to be long for a move back to $1367 than below $1346 given the 3:1 risk to reward ration attainable. This bullish view would be negated should we see an hourly close below $1346.