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 consolidating after channel break
Gold is proving remarkably resilient following a bearish shift last week, after price fell out of an ascending channel and below the key $1228 support level. We have since seen a period of consolidation, with a symmetrical triangle coming into play.
Ultimately we need to see a break through $1219 to provide a bearish signal. However, to the upside it is more difficult as any rally that falls short of the $1245 level could look like a retracement of the pullback from that level. As such, a push through $1245 is required to become bullish once more.