Aussie Gold is under pressure so where to from here

Commodity Analysis Spot Gold XAUAUD

Time Frame : Daily Chart

Spot Gold XAUAUD

Aussie Gold, XAUAUD, is under pressure as price sits at the recent daily lows around 2160. The bulls are now watching for price to hold this level so that it can breath some more life back into the Australian Gold Sector for a new run higher. With the current momentum down from 2260, we see the potential for an extension of the current move through the 2160 zone with a fall of another $100. This may coincide with US stock markets moving up into new all time highs as earnings come out better than expected and the safe haven appeal of Gold fades. We are keeping an eye on NCM, SLR, PRU, EVN and GOR for now as longer term trends are still up and they have also corrected well off recent highs.

Commodity : XAUAUD – Aussie Gold

Current Price : 2160

Status : On watch for a push through support

Alert History

Previous Alert 20/08/19

Commodity Analysis Spot Gold XAUAUD

Time Frame : Four Hour Chart

Spot Gold XAUAUD

Gold backed away from the highs as we expected and is now at an important level for the bulls. Price is hovering just above 2194 after moving away from 2260 as a bounce in the share market has triggered some profit taking into the precious metal. The volume has eased as price pushes into support so we see the opportunity for buyers to react and lift price higher. What happens next will depend on a few factors. The continued squeeze on the short sellers in the share markets as stimulus is applied by central banks would mean further downside into gold and a deeper correction. If the AUDUSD continues the downward trajectory, Gold (in Aussies dollar terms) will be supported. We still favour further downside but even so, that does not mean that the longer term trend is over. Some heat still needs to come out of the commodity and we are seeing that into the local gold stocks so we are watching carefully how the action plays out for opportunity to jump into some gold stocks if the setups play out. Watching SAR, SLR, NST, EVN, NCM and PRU.

Commodity : XAUAUD – Aussie Gold

Current Price : 2209

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

Previous Alert 14/08/19

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