Senior Trader Daily Update 4 October 2017

Good morning everyone.
 
Gold and silver trekked sideways in US Dollar terms for the most part during the Far Eastern timezone yesterday, which was affected by National Day of the People’s Republic of China ‘Golden Week’ public holidays. XAU/AUD was given a boost however, after the Reserve Bank of Australia left rates unchanged at 1.50% which torpedoed the AUD/USD and consequently drove XAU/AUD higher.
 
US equity markets remain near record highs and combined with recent US Dollar strength, largely kept gold and silver in check on an otherwise insipid and uninspiring day. Friday’s all-important release of the latest employment data by the US Bureau of Labor Statistics should hopefully bolster interest one way or the other.
 
Technically, XAU/AUD holds above support at 1612.50 and trades within a triangular congestion zone between 1612.50 and 1644.00.
 
Meanwhile, XAU/USD is confined within a well-defined downtrend channel (Upper channel resistance at USD 1292 and Lower channel support at USD 1255 today). Having broken beneath the 50% Fibonacci retracement (of the USD 1204.50 (July 10th) to 1357.50 (Sept 8th) move) located at USD 1281, the 61.8% retracement at 1263 presents as the next downside support target, beneath which lies the technically significant 200 Day moving average at USD 1251.50
 
Good luck.
 
Regards,
Andre