Senior Trader Daily Update 15 September 2017

Good morning everyone and Happy Friday!
 
A tumultuous day in the markets saw gold and silver eventually close near session highs.
 
Gold and silver were driven hither and yon by;

• Disappointing Chinese economic data

• The Wild West of cryptocurrency markets with newswires carrying reports that “China may shut all local Bitcoin exchanges by Sept: YICA”

• The Bank of England keeping interest rates unchanged and hinting at the tightening of the monetary spigots in the months ahead.

• US Treasury Secretary, Steven Mnuchin commenting that: “Although we respect the Fed’s independence, we are concerned about economic growth. We’re doing everything we can -- whether it’s tax reform, whether it’s regulatory relief, whether it’s trade -- to create economic growth. And we’re less concerned about inflation at the moment."

• Reports that the Democratic People’s Republic of Korea were preparing another missile launch

• The Democratic People’s Republic of Korea launching a missile at 6:57am local time, which passed over Hokkaido at 7:06am local time, and came down in the Pacific Ocean, some 2,000 KM east of Japan's Erimo Misaki.

Technically, XAU/AUD found good support again on the dip back towards the 21 Day moving average and bounced higher and an eventual clearing of resistance at AUD 1686.50 (the 76.4% Fibonacci retracement of the 1728 to 1552.50 move) remains favoured, which would then open the way to a move to the June 6th high at AUD 1728.00 to complete a technical “rounding bottom” pattern.
 
XAU/USD rendezvoused with its 21 Day moving average and posted a strong close. ‘Blue Horseshoe’ really favours the likelihood of a re-test of the September 8th high at USD 1357.50 from current levels, with further targets at USD 1368 (August 2nd high) and USD 1375.50 (double top from July 6th & July 11th 2016) remaining “in play”.
 
Investors will continue to monitor developments on the Korean peninsula over the weekend making it likely that precious metals will retain their ‘safe haven’ bid as the week draws to a close.
 
Good luck and have a great weekend.
 
Regards,
Andre