Gold News Update - 17 October 2018

PRECIOUS METALS RANGES: Trade Date- October 16th

COMMENTS:
Consolidation for XAU/USD as the recent advance hesitates around the 100 Day moving average and the 38.2% Fibonacci retracement at USD 1238.65 with previous major resistance at 1214.85 now acting as support. While pullbacks as deep as USD 1200.00 are possible, they would not cause any significant technical damage to the favoured bullish outlook for XAU/USD. Topside technical targets at USD 1238.65, 1262.85, 1277.25 & 1287.00 remain ‘in play’ and any dips / weakness back towards USD 1200.00 are likely to be well supported.
  

COMMENTS:
It appears that there is some technical “wood” to be chopped ahead of the 76.4% Fibonacci retracement at AUD 1730.10 with the market posting highs at AUD 1727.50 on Monday and Tuesday. A move into the AUD 1730 -1746.50 region (and potentially as far as 1768.75) remains favoured at this stage and any dips back towards the 200 Day moving average and the 50 % Fibonacci retracement (between 1687.00 and 1692.50) should remain well supported.


COMMENTS:
XAG/USD has posted two closes above the 55 Day moving average this week but current topside price action feels tepid at best. A move and close beyond the $14.7350 / $15.00 region remains desirable in order for XAG/USD to provide confidence that it will have the legs to sustain any further advances towards some meaty upside technical targets at USD 15.19/15.23, 15.47, 15.63 & 16.03.
 


COMMENTS:
XAG/AUD remains contained ahead of the $20.88 level (near its 100 Day moving average and 38.2% Fibonacci retracement) but the imminent crossing of the 21 and 55 Day moving averages has the potential to provide XAG/AUD with the required impetus to move beyond AUD 20.88 and additionally, to continue a sustained advance towards technical targets at $21.15, $21.30 and $21.72. Dip buying remains the preferred trading stance.
 
Kind regards,
Andre