Senior Trader Daily Update 13 September 2017

Good morning everyone.
 
Not a lot to report from Tuesday’s activity in the precious metals markets with intraday speculative jockeying seeing gold drift lower during the Far Eastern session, before buying returned when Europe arrived and finally a ‘pop’ to session highs as gold was alleged to have benefited from Bitcoin getting slammed lower late in the day when newswires carried the following comments from JP Morgan’s Chairman, President and CEO, Jamie Dimon:
 
DIMON: BITCOIN IS A "FRAUD"; "WORSE THAN TULIP BULBS"
DIMON: BITCOIN WILL EVENTUALLY BLOW UP
DIMON: BITCOIN WON'T END WELL
DIMON: WOULD FIRE ANY TRADER TRADING BITCOIN FOR BEING STUPID
 
In other news yesterday, the UN Security Council unanimously agreed to impose fresh sanctions on the Democratic People’s Republic of Korea, however the new sanctions were not as stringent as first mooted by the US, leading to a modest shift back to the ‘risk on’ trade.
 
US National Debt also punched through the 20 trillion Dollar level at the end of last week after the lifting of the ‘debt ceiling’. In view of this, next week’s Federal Open Market Committee meeting is unlikely to be canvassing the need for interest rate increases in the foreseeable future. By way of anecdote, the real-time ‘Debt Clock’ at the corner of 44th street and 6th Avenue in Manhattan was removed on Tuesday morning, apparently for ‘updates’ after the 20 trillion Dollar level was surpassed.
 
Technically, XAU/AUD mean-reverted back towards the 21 Day moving average at AUD 1646.00 before finding good support and bouncing away. 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.
 
Technical “back-filling” in XAU/USD as deep as the 21 Day moving average at USD 1312.50 cannot be ruled out. However, targets at USD 1368 (August 2nd high) and USD 1375.50 (double top from July 6th & July 11th 2016) still remain “in play”.
 
Good luck.
 
Regards,
Andre