Gold News Update - 19 October 2018

PRECIOUS METALS RANGES: Trade Date- October 18th

COMMENTS:
XAU/USD continues consolidating between the 38.2% Fibonacci retracement at USD 1238.65 and previous major resistance at 1214.85 which is now acting as support. Potential pullbacks as deep as USD 1200.00 would not cause any significant technical damage to the favoured bullish outlook for XAU/USD. Topside technical targets at USD 1238.65, 1262.85, 1277.25 & 1287.00 remain ‘in play’ and any dips / weakness back towards USD 1200.00 are likely to be well supported.
 

 
COMMENTS:
XAU/AUD crept right up to the 76.4% Fibonacci retracement at AUD 1730.10 but has yet to clear the apparent ‘wood’ (resting sell orders) there for the fourth successive day. A move into the AUD 1730 -1746.50 region (and potentially as far as 1768.75) remains favoured at this stage and any dips back towards the 200 Day moving average and the 50 % Fibonacci retracement (between 1687.00 and 1693.00) should remain well supported.
 

 
COMMENTS: 
XAG/USD is currently seeing non-descript price action in spite of posting three closes above the 55 Day moving average this week. A move and close beyond the $14.7350 / $15.00 region is needed to provide a degree of confidence that the market can sustain further advances towards some meaty upside technical targets at USD 15.19/15.23, 15.47, 15.63 & 16.03.
 

COMMENTS: 
A couple of consecutive days of lower highs and lower lows for XAG/AUD after it stalled ahead of the $20.88 level (near its 100 Day moving average and 38.2% Fibonacci retracement) but yesterday’s dip / weakness back to AUD 20.2750 (approximate to the 21 Day moving average) was well supported and the market rebounded sharply, thereby posting a ‘long-legged’ Doji candlestick. Bullish speculative interests await a move beyond AUD 20.88 in the hope that this will trigger a sustained advance towards technical targets at $21.15, $21.30 and $21.72. Buying on dips remains favoured.

Kind regards,
Andre