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 hit by hawkish Fed
Unsurprisingly, the Federal Reserve’s shift to a more hawkish stance for next year has done little for gold. The price tested the area around $1133 overnight, so this is the first area of support to watch. Any rally, which may still materialise despite last night’s meeting, would need to push on above $1160 to suggest consolidation rather than further losses are likely.
From here the price needs to clear $1170 and then $1180. Further weakness could see the price head towards $1122 and then $1106.