Senior Trader Daily Update 2 December 2017

Hello everyone,
 
Precious metals markets were ambling into the weekend on Friday until financial markets were thrown into late turmoil when a bottom-feeding ‘journalist’ from ABC News (US) ran a fraudulent story that former National Security Adviser in the Trump Administration, Lieutenant General Michael Flynn, would be testifying that then candidate Trump had ordered him to engage with Russian officials (thereby validating the “Russian Collusion” narrative), when in fact, Lieutenant General Flynn had been instructed to engage with Russian officials by President-elect Trump during the transition period as part of the normal (and legal) business of government.
 
The Dow Jones Industrial Average shed 390 points on the basis of the irresponsible falsehood as ABC News sat on a retraction for hours. XAU/USD rallied from 1271.50 to just short of 1290.00 before rolling over (and then gapping lower on this morning’s Far Eastern open). The US dollar was also crushed against all the major currencies on the back of the initial report.
 
This most recent example of (intentional) erroneous reporting underscores the agenda-driven approach and blind hatred of the US mainstream media towards President Trump and validates his placing the “Fake News media” directly in his crosshairs, as well as totally debasing any of their contributions.
 
By the time ABC News had issued its retraction and subsequently suspended the journalist involved, the damage had been done and the markets had closed for the week. Consequently, this morning’s open in the Far East has seen precious metals reverse Friday’s ‘spike’.
 
Market focus will shift back to the potential for a pro-growth US tax reform package to be signed before year end. The US Senate passed an amended version of the tax bill over the weekend leaving just the process of a reconciliation of differences between the two Houses of government, prior to passing a joint final tax bill.
 
The other highlight of the week ahead will be Friday’s latest monthly US employment data from the Bureau of Labor Statistics with consensus for the headline Non-Farm Payrolls (Nov) figure coming in at +199K.
 
At the risk of sounding like the proverbial ‘broken record’, technically XAU/USD remains firmly entrenched within its sideways range as the lower bound of the channel at USD 1265 and its 200 Day moving average at USD 1267 continues to provide good support and rallies towards USD 1295 / 1300 provide solid resistance.
 
XAU/AUD remains within the triangular congestion region bounded by resistance at the June 6th high at AUD 1728 and support at the 55 Day moving average and major trendline at the AUD 1659 / 1661 area. 
 
The XAU/XAG Ratio (the number ounces of silver that 1 ounce of gold can purchase), registered another higher high / higher low since breaking through the topside of a triangular congestion zone last week.
 
Good luck and have a good week.
 
Regards,
Andre