Gold News update - 18 October 2018

PRECIOUS METALS RANGES: Trade Date- October 17th

COMMENTS:
XAU/USD continues with consolidation type price-action 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:
Tough going for XAU/AUD just ahead of the 76.4% Fibonacci retracement at AUD 1730.10 as the apparent ‘wood’ (resting sell orders) stalls the market there for the third 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 1692.50) should remain well supported.
 

 
COMMENTS:
XAG/USD has posted three closes above the 55 Day moving average this week but has not had the legs to move and close beyond the $14.7350 / $15.00 region 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:
XAG/AUD remains contained ahead of the $20.88 level (near its 100 Day moving average and 38.2% Fibonacci retracement) but the imminent crossing of the 21 and 55 Day moving averages has the potential to provide XAG/AUD with the required impetus to move beyond AUD 20.88 and additionally, to continue a sustained advance towards technical targets at $21.15, $21.30 and $21.72. Buying on dips / weakness as far back as AUD 20.19 remains favoured.

Kind regards,
Andre