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Spot Gold and Aussie Gold price action
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Time Frame : Intraday 4 hour Chart
Spot Gold remains linked to the movements of the USD and with the USD lacking a clear direction at this stage, Gold is being held down. The risk is that there may not be as much stimulus as anticipated which will trigger a short squeeze into the USD and fall into Gold. Add to that some potential safe haven buying if share markets fall apart, we expect Gold to test down to 1858. When talking about gold in Aussie Dollar terms, we have to take into account the AUD. If there is going to be a USD rally, then AUD will be sold lower and in XAUAUD terms, Aussie gold will rally. When looking at the chart below, Spot gold is holding below 1930 and set to move lower while Aussie Gold is holding support and set to run up and hopefully supporting local miners. This supports the view of a short squeeze into the USD.
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Commodity : Gold
Current Price Spot XAUUSD : 1902
Current Price Aussie XAUAUD : 2672
Status : On watch for Aussie Gold to move higher
Spot Gold
Aussie Gold
