Precious Metals News Update - 8 May 2018

08 May 2018

COMMENTS / HIGHLIGHTS:

A quiet start to the week with a UK Bank holiday impacting liquidity and markets holding station within ranges.
Overnight the US President Tweeted “I will be announcing my decision on the Iran Deal tomorrow (Tuesday) from the White House at 2:00pm.” (this comes ahead of the May 12th deadline for the renewal of sanctions waivers in relation to the Joint Comprehensive Plan of Action (JCPOA) agreed with Iran that was signed in 2015). President Trump is widely anticipated to abandon the deal and to reimpose sanctions upon the Islamic Republic of Iran.

TECHNICAL COMMENTS:

XAU/USD: A ‘long-legged Doji’ candlestick was posted yesterday on the Daily chart (a long upper and lower body with virtually the same opening and closing price, reflecting market indecision). That said, the last four days have seen higher lows in XAU/USD and for the time being the lower end of the sideways trading band (the USD 1300 / 1305 region) that XAU/USD has been contained within since the beginning of the year, has proved robust.
XAU/AUD: XAU/AUD remains trapped within its narrow sideways range between its 21 Day moving average (AUD 1740.00) and topside resistance in the AUD 1752.00 / 1757.00 zone and only a significant close through the upper boundary will signal that XAU/AUD has broken out.

Good luck.

Regards,
Andre