Precious Metals News Update - 19 April 2018

PRECIOUS METALS RANGES - Trade Date: April 18^th

COMMENTS / HIGHLIGHTS:

• A sterling performance from silver saw the white metal marginally edge out palladium as the star performer from amongst the precious metals complex on the day, as sanctions against the Russian Federation continue to underpin palladium in particular (debatable whether this had any bearing on silver’s surge on Wednesday, however). 

• Silver’s outperformance relative to gold swatted the gold/silver ratio lower.

• XAU/USD: Higher highs and higher lows over the past few days augur well for XAU/USD to have a tilt at the top end of its USD’s broader USD 1306 – 1365 sideways range. For the moment, dips back towards the 21 Day moving average (1339.00) remain supported. The sideways trading band remains in play and dip buying or rally selling near the identifiable support and resistance levels (i.e. USD 1335/1340 to USD 1350/1365) should continue for the moment. An appreciable move (and close) above USD 1365.00 would be required to confirm a topside breakout.

• XAU/AUD: Uninspiring and insipid trading continues within a narrow range in XAU/AUD and with current levels near the middle of the broader AUD 1715 – 1755 range, directionally, XAU/AUD is a coin-flip currently.

• XAG/USD: The solid breakout yesterday from a largely featureless sideways band going back to mid-Feb in XAG/USD, has driven the metal right up to significant trendline resistance (going back to July 2016) at the USD 17.20 level. Should silver’s topside momentum continue then the end of Jan high at USD 17.70 and the early September 2017 high at USD 18.22 present as the next topside technical targets. 

• XPD/USD: The 100 Day moving average at USD 1022 proved no obstacle at all for palladium as the industrial metal crashed through like an 18-wheeler, bringing the end of February corrective high at USD 1068 into play now.

• XAU/XAG Ratio: Silver’s overnight surge has driven the gold/silver ratio back to a significant technical support line at 78.44 which has been in place since the beginning of March last year. A break below the line would initially open the way back towards the 76.50 - 77.00 region.