Gold News Update - 15 October 2018

PRECIOUS METALS RANGES: Trade date- October 14th

COMMENTS:
Since the last technical note on Oct 5th, XAU/AUD ticked has ticked all the price-action boxes. Specifically, “Expect any pullbacks on mean reversion or profit taking to be well supported at the AUD 1679 - 1687 level.” - tick. “The 61.8% Fibonacci retracement and July 15th high at $1706.30 is well within striking distance but expect some resistance at this level initially.” - tick. “Once cleared, the way opens to AUD 1730 - 1746.50. From a technical perspective, XAU/AUD looks robust.”- tick. A move towards AUD 1730 - 1746.50 (and potentially as far as 1768.75) remains favoured at this stage and dips should remain well supported.
 
 

COMMENTS:
The 55 Day moving average continues to retard XAG/USD’s advance and while a close above that level is possible imminently, a move and close beyond the $14.7350 / $15.00 region would be desirable for XAG/USD to provide confidence that it will have the legs to sustain any further advance towards some meaty upside technical targets at USD 15.19/15.23, 15.47, 15.63 & 16.03.
 

COMMENTS:
Since the last technical note on Oct 5th, the price action in XAG/AUD has largely played out as envisioned. Specifically, “…it is possible that XAG/AUD could potentially pare recent gains all the way back into the $20.2550 - $20.3550 area without negating the overall bullish technical outlook.” The $20.88 (the conjunction of the 100 Day moving average and 38.2% Fibonacci retracement) and $21.30 levels are still very much ‘in play’ and dip buying remains the preferred trading stance.

Kind regards,
Andre