Senior Trader Daily Update 31 October 2017

Good morning everyone.
 
Mixed trade on Monday saw gold and silver in USD and AUD terms firm modestly as investors understandably took a “wait and see” approach and strapped themselves in ahead of a hectic week that includes;

• MonPol announcements from the Bank of Japan on Tuesday, the US Federal Reserve on Wednesday and the Bank of England on Thursday.

• An expected announcement by US President Trump (prior to his departure for an 11-day trip through Asia on Friday), nominating the next Chairman of the US Federal Reserve. Market consensus strongly favours Jerome Powell (a current member of the Federal Reserve Board of Governors) succeeding in receiving the nomination to the prestigious and all-important post over Stanford University Economics Professor John Taylor.

• The latest US Bureau of Labor Statistics employment data for October with market consensus forecasting a 312,000 increase in Non-Farm Payrolls and a 4.2% Unemployment Rate according to Bloomberg.

President Trump’s tax reform agenda, the general strength of the US economy, soaring equity markets and a strong Greenback have all kept gold and silver in check recent times but the Greenback modestly pared gains from the 3&½ month high that it posted on Friday and US equities likewise retreated marginally from record highs, allowing the precious metals to firm on Monday.
 
Technically, XAU/AUD is trapped within a wedge-congestion zone bounded between approximately AUD 1634 to just beneath AUD 1670.
 
XAU/USD remains supported above the 200 Day moving average (USD 1260) with resistances emerging at USD 1281.50 (21 Day moving average), USD 1284.50 (trendline resistance), USD 1297.50 (55 Day moving average) and USD 1300.00 (big figure psychological resistance).
 
Good luck.
 
Regards,
Andre