Aussie Gold falls from grace causing local gold stocks to come under pressure

Commodity Analysis Spot Gold XAUAUD

Time Frame : Four Hour Chart

Spot Gold XAUAUD

Gold was hit overnight with a USD rally as Trump put the hand-brake on new tariffs potentially admitting that the higher costs are hurting consumers not the Chinese as was touted. The move may see further USD buying in the near term which will cause further heat to come out of the Gold price as traders race to lock away some gains. It is early stages yet in the price action and it is hard to analyze after the initial selloff with Aussie Gold dropping around $85 from the highs, but one thing to remember is there is a lot of fuel build and is all biased one way – up. We are now watching to see how buyers react around 2194 to see if price holds to build higher lows signaling a potential run to new highs or whether price builds a lower high which may bring in another wave of sellers (refer to chart below). As the action is well and truly extended, and considering the move in local gold companies, we are favouring a correction lower.

Commodity : XAUAUD – Aussie Gold

Current Price : 2209

Status : On watch for a potential correction as buyers lock away some gains