Gold News update - 2 November 2018

PRECIOUS METALS RANGES: Trade Date- November 1st

COMMENTS: 
XAU/AUD continued its retreat down to near the AUD 1706.25 level (noted in Wednesday’s technical) and whilst XAU/USD ripped higher yesterday, the Aussie dollar also surged, which kept XAU/AUD from rebounding away from recent lows. The price action (still) appears corrective in nature and should the $1706.25 fail to hold, then weakness into the AUD 1687 to 1696 region while possible, would not give cause to expect a complete unwind of the recent surge towards the May 9th high.
 

COMMENTS:  
Follow through downside weakness was seen in XAG/USD to the $14.25 noted in Wednesday’s technical but the previously inert market sprang to life yesterday, as the white metal surged from its low, straight back to the top of its recent range at USD $14.8350. The ‘bullish engulfing’ candlestick posted yesterday, now gives hope (to bullish speculative interests) that XAG/USD can move above and close beyond psychological big-figure (and August 28th high) resistance at $15.00, bringing upside technical targets at USD 15.23, 15.63, 15.80 & 16.03 back into play.
 

COMMENTS:  
The three-day slide in XAG/AUD values presaged by last week’s intermediate technical ‘double top’ on October 23rd and 26thwas arrested yesterday as the market bounced aggressively away from its 55 Day moving average, posting a ‘bullish engulfing’ candlestick.  Although the metal did marginally over-extend beneath the $20.16 to $20.36 region highlighted recently, the market still looks ok from a bullish perspective given yesterday’s rally and close. The prospect of some modest technical ‘back-filling notwithstanding, it is probable that a further advance back towards the technical ‘double top’ at AUD $20.97 will be seen, which would then place XAG/AUD in a strong position to trace out a ‘V’ shaped recovery of the mid-June to late September slide in values (i.e. $23.0875 > $19.5125 > $23.0875), if (or when) the 200 Day moving average at $21.0950 can be surpassed.

Kind regards,
Andre