Precious Metals News Update - 11 May 2018

14 May 2018

COMMENTS / HIGHLIGHTS:

A mixed day’s trade saw the US dollar weaken, US equities strengthen, crude oil prices dip before recovering, US Treasury yields soften and the entire precious metals complex (XAU/AUD excepted) registering respectable gains.

Geopolitics remained at the forefront as Israel and Syria exchanged salvos albeit with muted market reaction. Consternation also remained surrounding the Trump Administration’s withdrawal from the ‘Iran Nuclear Deal’ earlier in the week.

TECHNICAL COMMENTS:

XAU/USD: Respectable price action saw XAU/USD bounce decisively away from support at the technically all-important 200 Day moving average and the lower boundary of its sideways trading band at the USD 1300 / 1305 region. If minor technical resistance at the 21 & 55 day moving averages (USD 1325 – 1327) can be successfully negotiated, then the way should open for XAU/USD to oscillate back to the top end of its well established USD 1306 - 1366 range.

XAU/AUD: From a technical standpoint it would have been preferable for XAU/AUD to hold station and form a base above recent topside resistance at the AUD 1752.00 / 1757.00 zone that it broke above on Tuesday, but a stronger AUD/USD dragged values lower (even with a much firmer XAU/USD performance on Thursday). Potentially, support may re-emerge at the 21 day moving average (AUD 1744) and XAU/AUD could recommence its trek higher, it is equally probable however, that the market could see further extended price action back within the old sideways range between AUD 1720.00 and 1752.00/1757.00

Good luck and have a great weekend.

Regards,
Andre

14 May 2018

COMMENTS / HIGHLIGHTS:

A mixed day’s trade saw the US dollar weaken, US equities strengthen, crude oil prices dip before recovering, US Treasury yields soften and the entire precious metals complex (XAU/AUD excepted) registering respectable gains.

Geopolitics remained at the forefront as Israel and Syria exchanged salvos albeit with muted market reaction. Consternation also remained surrounding the Trump Administration’s withdrawal from the ‘Iran Nuclear Deal’ earlier in the week.

TECHNICAL COMMENTS:

XAU/USD: Respectable price action saw XAU/USD bounce decisively away from support at the technically all-important 200 Day moving average and the lower boundary of its sideways trading band at the USD 1300 / 1305 region. If minor technical resistance at the 21 & 55 day moving averages (USD 1325 – 1327) can be successfully negotiated, then the way should open for XAU/USD to oscillate back to the top end of its well established USD 1306 - 1366 range.

XAU/AUD: From a technical standpoint it would have been preferable for XAU/AUD to hold station and form a base above recent topside resistance at the AUD 1752.00 / 1757.00 zone that it broke above on Tuesday, but a stronger AUD/USD dragged values lower (even with a much firmer XAU/USD performance on Thursday). Potentially, support may re-emerge at the 21 day moving average (AUD 1744) and XAU/AUD could recommence its trek higher, it is equally probable however, that the market could see further extended price action back within the old sideways range between AUD 1720.00 and 1752.00/1757.00

Good luck and have a great weekend.

Regards,
Andre