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Gold News Update - 30 October 2018

30 October 2018

PRECIOUS METALS RANGES: Trade Date- October 30th Gold (USD)
COMMENTS: 
XAU/USD probed above the USD 1238.65 level on Friday (the 38.2% Fibonacci retracement of the USD 1365.40 to 1160.25 move) but was unable to hold the advance and remains trapped between there and previous major resistance at 1214.85 (which is now acting as support). Sideways consolidation seems the order of the day for the moment but overall an eventual bullish move towards technical targets at USD 1262.85, 1272.80 & 1287.00 remains favoured (once a close above USD 1238.65 is obtained). While any possible (but not probable?) pullbacks into the USD 1204.00 / 1215.00 region should be well supported.
 
Gold (AUD) 
COMMENTS: 
XAU/AUD surged toward the May 9th high ($1768.75) last Friday but gave up the entirety of its advance by the market close and posted a long-legged Doji candlestick, as selling ensued and the higher level was rejected. Paradoxically, yesterday also saw a long-legged Doji candlestick posted as XAU/AUD bounced sharply from previous resistance at $1730.00 which now seems to be acting as support. Early days but it’s increasingly looking as though the market will consolidate within an AUD 1730 to 1760.00 range, notwithstanding any mean-reversion as far back as the 21 Day moving average at $1715.00.
 
Silver (USD)
COMMENTS:  
As feared, XAG/USD’s uninspiring price action of late led to some ‘stale’ long liquidation yesterday. The market feels like a coin-flip around present levels, however downside risk into the $14.00 to $14.25 region is now distinctly possible. Until XAG/USD can move above and close beyond $15.00, any plans for an advance towards upside technical targets at USD 15.19/15.23, 15.47, 15.63 & 16.03, need to be mothballed.
 
Silver (AUD)

COMMENTS: 
An intermediate technical ‘double top’ on October 23rd and 26th triggered some long liquidation in XAG/AUD. From a technical perspective the market looks ok as long as the $20.16 to $20.36 region holds on any additional weakness. The potential to trace out a ‘V’ shaped recovery of the mid-June to late September slide in values (i.e. $23.0875 > $19.5125 > $23.0875) remains, if and when the 200 Day moving average at $21.1150 can be surpassed.


Kind regards,
Andre

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