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 tests notable resistance level
Gold has been testing the key $1230 resistance level in the past 24 hours, as a sign that we could be due a bounce of sorts following the recent downturn.
Should we see an hourly close above $1230, then it would point towards a potential move into the 61.8% ($1245) or 76.4% ($1252) Fibonacci levels. However, the downtrend would remain intact unless we see a break and hourly close above $1265.
As such, we could either remain below $1230 for the bearish trend to stay in play, or else break through $1230 to provide a likely move to the $1245-$1252 resistance zone upon which the bearish outlook would come back into play. Only with a move above $1265 would a bullish outlook return.