Gold News Update - 26 September 2018

PRECIOUS METALS RANGES- Trade date: September 25th

COMMENTS:
Featureless trade was seen yesterday within an exceptionally narrow range, as XAU/USD is in the hands of the intraday specs who continue to scalp and job around within the now well established sideways trading range, pending a breakout. Selling rallies / buying dips as appropriate, remains the prudent course of action. XAU/USD is still confined within the broader sideways trading range between the Aug 24th low at USD 1183.20 and the Aug 28th high at USD 1214.85. XAU/USD needs a close above the 55 Day moving average at USD 1207.55 and more importantly, a move and close above the downtrend / resistance line (USD 1219.85) which has remained undefeated since gold began its retreat in mid-April, before thoughts of consistently higher levels can be entertained.
 

 
COMMENTS:
Constructive price action with a consecutive higher low but XAU/AUD stalled at the 1658.00 level noted yesterday. Nonetheless, we keep the faith that XAU/AUD will make further attempts at trendline resistance (1686.70) and the technically significant 200 Day moving average (1691.15) (and a close above AUD 1658.00 will certainly further this cause). To the downside, a major level of support is seen at the AUD 1635.85 / 1636.85 region (August 28th low and 61.8% Fib of 1605.10 > 1688.20) and dip buying on any further weakness into the 1636 to 1643.70 zone remains preferred (on the proviso that tight protective stop losses are in place just beneath the August 28th low, given that there is little by way of technical support until the August 16th low (AUD 1605.10) should AUD 1635.00 break).
 
Regards,
Andre