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 into crucial resistance confluence
Gold gained sharply yesterday, as investors went running for cover in the wake of a widespread risk-off move. While the price has broken higher from a symmetrical triangle this morning, it has since pushed into a major roadblock.
The confluence of a descending trendline and the 76.4% Fibonacci retracement provide us with a key hurdle that must be overcome if we are going to carry this rally onwards. As such, an hourly close above $1250 would resume the bullish outlook, whereas an hourly close below $1243 would point towards a period of weakness.