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 pulls back following notable rally
Gold has managed to break through the notable resistance level of $1209 on Friday, following a pullback to $1200 last week. This looks to pave the way for a period of strength for gold, yet the key challenge to overcome will be $1219. This morning has seen the market fail at that level, with price currently pulling back.
However, given Friday’s price action, this looks like a temporary retracement before we push higher once more. As such, as long as we do not see an hourly close below $1199, then a bullish outlook remain in place. Support levels of particular importance are $1209 (50% retracement and previous swing high) and $1204 (76.4% retracement).