Gold (XAU/USD) - Gold is staying above the 1528.75correction low. It continues to lose bullish momentum, but has not shown bearish momentum, hovering above the 50% retracement of the rally from 1495 to 1575 . If the current correction is not over, it can extend lower towards 1518-1520 pivot near 61.8% retracement. However, if there is no surprising factors to support the USD from this Friday's NFP, gold should continue rallying towards a swing projection target near 1585 .
Siver (XAG/USD) - Silver saw initial reversal signs to start last week. Price action was contained below the 49.78 high, so this week's action continued the consolidation , while gold's consolidation just began. 39.70 pivot is the next support for silver. Below that we can extend this decline to the 38.00 (50% retracement of the 2011 rally from 26.45 ). Only a push above 50.00 resumes the bullish trend towards 54.80-55 .
AUD/USD - While hard commodities dominated paper currencies, the Aussie stands king within the realm of paper currencies. The AUD/USD has a positive correlation with gold and its not surprising both are making record high levels. The current correction has been soft and 1.0775 remains an important support pivot. A break below this can head towards 1.0680 pivot just above the 61.8% retracement level. The bullish continuation outlook targets 1.15 in the medium term, using a swing projection of the 2008-09 rally from the 2010 low.
Fan Yang CMT
Chief Technical Strategist