Gold News Update - 18 September 2018

18 September 2018

COMMENTS:

Since bottoming on Aug 16th and recovering to the 23.6% Fibonacci retracement (of the 1365.40 to 1160.25 move) at USD 1208.70, XAU/USD has been consolidating within a sideways trading band between the Aug 24th low at USD 1183.20 and the Aug 28th high at USD 1214.85.
From a technical perspective, there is little to suggest other than to respect this trading range for the present, while the yellow metal remains hostage to headlines surrounding the ongoing US Administration’s ‘trade war’ and consistently robust US economic data (especially compared with the relatively anaemic data coming from its major trading partners).

COMMENTS:

Since bottoming on Aug 16th, XAU/AUD rebounded spectacularly all the way back to the 50% Fibonacci retracement (of the 1768.75 to 1605.10 move) at AUD 1686.90. The conjunction of the 50% Fib retracement and the 100 Day SMA provided good resistance and XAU/AUD has pared recent gains on profit taking / long liquidation at that level but has found support back at the 38.2% Fibonacci retracement (of the 1768.75 to 1605.10 move) at AUD 1667.60.
Additional support is likely at AUD 1657/1660 on any further weakness and it seems probable that XAU/AUD will regroup and make a further attempt at the technically significant 200 Day moving average (1690.90) and trendline resistance (1691.65).

Kind regards,
Andre