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 weakness could be short-lived
Gold has been selling off overnight, with the price having passed the 61.8% retracement this morning. Given the recent uptrend, there is a good chance we could see the price begin to rally once more from here.
On the wider perspective, the inability to break through $1296 provided mixed signals as to whether this trend will continue. However, it still looks attractive to be long at a deep retracement as long as we do not break below $1259.