Senior Trader Update 21st June

Good morning everyone,
 
After choppy, sideways, consolidative price action, gold and silver managed to finish with a modest bounce out of recent lows on Tuesday. Gold held above major trendline support in both AUD & USD terms. Hawkish comments from the New York Federal Reserve Bank’s President Dudley however, kept investor sentiment firmly tilted in favour of the Greenback and consequently precious metals values continue to be weighed down.

Elsewhere, May data showed that Russian Federation gold reserves increased by 700,000 ozs (21.8 tonnes) over the course of the month (with total reported gold reserves at approximately 1,708 tonnes).

Technically, the major uptrend support lines that commenced in mid-December last year remain crucial demarcation points for gold bulls in both AUD and USD terms.

In XAU/AUD, major trendline support sits at AUD 1634.50 today. Penetration of the trendline would open the way to the end of March low at AUD 1621.50, as well as bringing the 21st of March low at 1591.40 and the March 15th low at AUD 1578 into play.

XAU/USD has seen two minor probes beneath the major trendline support (which is today located at USD 1242.50), however gold has yet to close beneath the trendline. The 200 Day Moving average at USD 1236.00 would likely provide the last line of technical defence for gold bulls. A break would open the way to the May 9th low at USD 1214.
 
Good luck.
 
Regards,
Andre