Gold News Update - 31 October 2018

PRECIOUS METALS RANGES: Trade Date- October 30th

COMMENTS:
Support at $1730.00 proved ephemeral yesterday as XAU/AUD gathered downside momentum and retreated to within range of its 21 Day moving average at $1715.00. It is possible that further weakness as far as the AUD 1706.25 level (give or take a few $) could ensue, but for the moment the price action appears corrective in nature and a complete unwind of the recent surge towards the May 9th high is not anticipated presently.

COMMENTS:
XAG/USD’s ‘bounce’ commencing the third week of September increasingly takes on the look of a ‘dead cat’, leaving the market now vulnerable to further weakness into the $14.00 to $14.25 region. Until XAG/USD can move above and close beyond $15.00, upside technical targets at USD 15.19/15.23, 15.47, 15.63 & 16.03 can’t be brought into play.

COMMENTS: 
Weakness continued yesterday after last week’s intermediate technical ‘double top’ on October 23rd and 26th triggered long liquidation in XAG/AUD. From a technical perspective the market looks ok, as long as the $20.17 to $20.36 region holds on any additional weakness. The potential 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) remains, if or when the 200 Day moving average at $21.1075 can be surpassed.

Kind regards,
Andre