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The recent appreciation of the precious metal, reaching its higher prices in the last thirty years, has fuelled the Australian dollar rally to the higher levels against most major currencies where it remains at the moment, nevertheless voices start to warn about the possibility of a sharp decline on gold’s value.

The Aussie is enjoying a particularly good momentum, a continuous appreciation that took it to a 18-year high against the U.S. Dollar, as a conclusion on a upper trend that started last October. On that trip, the AUD has gone hand by hand with gold, the third most valuable raw material exported by Australia only improved by cold and iron ore. 

That trend, however, might be coming to an end according some voices, as the precious metal could have reached its peak before heading down south; according to Steven Wesiak, technical analyst at ABN AMRO gold’s chart might be showing a head and shoulders formation: “A head-and-shoulders top is clearly taking shape in the short-term hourly with the last shoulder having formed at 738.60. Holding below it will likely tempt players to and take out the 720.80 support. If that snaps then prices could easily dip down to the 703.83 handle.”



Gold Chart

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