Senior Trader Update 20th June

Good morning everyone,
 
Gold and silver continued their retreat on Monday as US equities and Greenback strength weighed upon precious metals investor sentiment. ETF redemptions in gold have also dragged gold lower with the SPDR ETF seeing its largest outflow in six months over the course of last week.
 
Technically, gold has moved to ‘make or break’ levels for bulls in AUD and USD terms.
 
In XAU/AUD terms, gold has tested and held major trendline support at AUD 1634. Should the uptrend line which commenced back in mid-December last year fail to arrest the decline, then the end of March low at AUD 1621.50, the 21st of March low at 1591.40, and the March 15th low at AUD 1578 could all potentially be paid a visit. But we are already at an oversold level with some AUD strength.
 
XAU/USD also is perched just above major trendline support at USD 1241.50, a break of which could trigger momentum driven selling. The 200 Day Moving average at USD 1236.50 would be the last line of technical defence. Beneath, very little in terms of technical support emerges until the May 9th low at USD 1214.

Regards,
Andre