Senior Trader Daily Update 7 December 2017

Good morning everyone.
 
Mixed trade was seen in gold on Wednesday, while silver and platinum were pressured lower.
 
Gold slipped modestly after the release of the latest private U.S. ADP National Employment Report (Nov) which came in +190K and even though the all-important 200 Day moving average was penetrated, any sustained unravelling was prevented due to the US government funding and debt ceiling issue remaining unresolved.
 
In other matters, it’s difficult to ascertain whether the negative reactions and uncertainty created by President Trump’s historic announcement that the US government would henceforth recognize Jerusalem as the capital of Israel (and move its embassy there within six months), had any impact on the markets.
 
Technically, some mean-reversion in XAU/AUD saw price action move back within the triangular congestion zone between 1664 and 1728. Given the break beneath the major trendline support in recent sessions, it’s too early to rule out further downside weakness towards the 200 Day moving average at 1648.00.
 
XAU/USD closed below the all-important 200 Day moving average but presently remains supported at USD 1260.00 - the August 9th low. The August 8th low at USD 1251.50 emerges as the next support level on any break beneath USD 1260.
 
The XAU/XAG Ratio (the number ounces of silver that 1 ounce of gold can purchase), continued on its merry way posting higher highs and higher lows since breaking through the topside of a triangular congestion zone last week.
 
Good luck.
 
Regards,
Andre