Tech rebound hits high gear

Chris Beauchamp IG

Dip buyers have charged back into tech, but gold's travails continue, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Tech stocks post impressive recovery

Today has been almost the polar opposite of Friday’s doom-laden session. Two weeks of selling culminated in an unpleasant nose-dive into Friday’s close, but it appears that this was just the kind of price action dip buyers have been waiting for. Of course, Thursday had been a big up day and then fizzled spectacularly, but all rallies have to begin somewhere, and a 2% up day for the biggest tech index isn’t a bad way to start.

Gold continues to struggle

Usually gold might be expected to rally with tech, but a world of higher inflation and the temptation of stronger bond yields continues to be the metal’s worst nightmare. The best it could manage was a push towards $4200 last week, and even that has proved to be too much. All eyes are on $4100, which would signal a conclusive momentum turn is at hand.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

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