Precious Metals News Update - 20 April 2018

PRECIOUS METALS RANGES - Trade Date: April 19th

COMMENTS / HIGHLIGHTS:

• A spike in US Treasury yields overnight on increasing expectations of a fourth interest rate hike by the US central bank in 2018, lent support to the Greenback, drove US equities lower and precious metals gains (in USD terms) accrued earlier during Far Eastern and European trade, were pared by the close of business in NY.

• Many of the events that have driven financial markets over the past few weeks i.e. trade wars, shooting wars, sanctions, are on simmer at the moment but ‘headline risk’ remains ever present.

TECHNICAL COMMENTS:

• XAU/USD: Dips back towards the 21 Day moving average (1339.50) remain supported. The sideways trading band is still 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: XAU/AUD remains a coin-flip at current levels as it thrashes about either side of its 21 Day moving average (1735.50), within its much broader AUD 1715 to 1755 sideways trading range.

• XAG/USD: XAG/USD is presently perched marginally above significant trendline resistance (going back to July 2016) at the USD 17.20 level. Further topside momentum is required before the end of Jan high at USD 17.70 and the early September 2017 high at USD 18.22 can be brought into play.

• XPD/USD: A higher high for XPD/USD but a “spinning top” candlestick was registered yesterday on the Daily chart (a broad intraday range followed by a close marginally above or below the opening level, suggestive of market indecision). “When a spinning top forms after a run up or run down in the market, it can be an indication of a pending reversal, as the indecision in the market is representative of the buyers losing momentum when this occurs after an uptrend..” (Wiki). That notwithstanding, the end of February corrective high at USD 1068 remains in play.

• XAU/XAG Ratio: A clear break overnight beneath the significant technical support line at 78.44 which has been in place since the beginning of March last year. The way back towards the 76.50 - 77.00 region has now opened.

Good luck and have a great weekend.
 
Regards,
Andre