Gold News Update - 19 September 2018

18 September 2018

COMMENTS:

XAU/USD is presently located in a ‘no man’s land’, right in the middle of the 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 the support / resistance levels of this sideways / consolidation range and to buy dips or sell rallies accordingly, pending a breakout.

COMMENTS:

XAU/AUD continued paring recent gains yesterday, moving beneath support at the 38.2% Fibonacci retracement (of the 1768.75 to 1605.10 move) at AUD 1667.60 before halting at additional support at the AUD 1657/1660 level highlighted yesterday.
While the potential for continuing weakness down to the AUD 1643.70 level can’t be ruled out, further attempts at trendline resistance (1690.80) and the technically significant 200 Day moving average (1690.95) remain favoured.

COMMENTS:

An ugly ‘bearish engulfing’ candlestick in mid-June was the trigger for the commencement of a downtrend which has seen XAG/USD continue on to break major support at both USD 15.65 (in mid-July) and USD 15.19 (in mid-August), leaving the white metal hovering precariously near the lows of mid-December, 2015 at USD 13.6475. While “catching falling knives” is best left to the brave or foolhardy and the sequence of lower highs and lower lows has yet to conclude, the magnitude of the move since mid-June, the technical significance of the USD 13.6475 level (having not been broken since December, 2015) and current market positioning, all lend weight to the view that silver may soon start to find some friends again. A significant break and close beneath USD 13.6475 however, opens the way to 9 year lows.

Kind regards,
Andre