The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.
Gold approaching crucial resistance level
Gold managed to rally back from the brink, after attempting to break to a new swing low, below the $1244 level. Despite the fact that the price managed to bounce back from that level, it is without a doubt a potential warning sign that we could head in that direction. Ahead we have a crucial resistance zone, between $1261 and $1264, which will dictate the state of play going forward.
The ability to break and post an hourly lose above $1264 would mean that we are likely to begin trending higher once more in a convincing manner. However, given yesterday’s move back into $1244, there is also a good chance we could see the market turn lower once more from this zone. It is a wait and see situation.