Precious Metals News Update - 18 April 2018

17 April 2018

COMMENTS / HIGHLIGHTS:

Gold and silver were buffeted around within recent ranges predominantly on headline risk. Weakness during the Far Eastern and European sessions was largely reversed by the US close however, as dip buyers swooped and scooped.
US Treasury Secretary Steve Mnuchin walked back yesterday’s Tweet from President Trump (“Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!”) stating that the Tweet was “a shot across the bow” and wasn’t signalling imminent action.
Palladium (and aluminium) continued their trek higher as US-imposed sanctions against the Russian Federation kept the starch in the market.

TECHNICAL COMMENTS:

XAU/USD: The 21 Day moving average at the USD 1336.50 level (yesterday) again provided the base for dip buyers to swoop in before XAU/USD was driven back towards recent resistance around the USD 1350.00 level. The strength on dips lends weight to the view that the market may edge its way higher towards the top end of its USD’s broader USD 1306 – 1365 sideways range. The sideways trading band remains in play, so dip buying or rally selling near the identifiable support and resistance levels (i.e. USD 1335/1340 to USD 1350/1365) remains likely for the moment.
XAU/AUD: Whilst the range may have contracted over the past couple of sessions, textbook range trading continues in XAU/AUD. Support at the AUD 1715 / 1720 level (previous resistance of the mid-August 2017 to late March 2018 sideways trading range) and resistance at AUD 1750/1760 should continue to be respected.
XPD/USD: XPD/USD sits within striking distance of its 100 Day moving average at USD 1022, which is likely to provide some resistance initially. A pullback may be seen ahead of the 100 Day moving average on some corrective price-action as profit taking emerges, however while the US sanctions against the Russian Federation (which have been driving prices higher recently) remain the focus of this market, an eventual advance beyond the 100 DMA cannot be ruled out, bringing the end of February corrective high at USD 1068 into play.

Good luck.

Regards,
Andre