Senior Trader Daily Update 03 July 2017

Good morning everyone. I trust it was a pleasant weekend.
 
Precious metals continued back-pedalling on Friday. The looming Independence Day holiday in the US tomorrow, as well as a general summer malaise across the northern hemisphere perhaps exerting as much influence as any other factor, like buoyant US equity market indexes.
 
The CFTC Commitments of Traders Report (as at 27/06/2017) showed:
 
A combination of substantial long liquidation as well as short selling contributing to a reduction in net non-commercial speculative long length of almost 2 million ozs in gold.
 
Another week of significant short selling from the non-commercial speculative silver community, in line with general bearishness across the precious metals complex. The data indicating a net change in total long length of just shy of 55 million ozs, following on from last week’s 73 million oz exodus.
 
Follow-through bearishness in the Platinum Group metals on balance, with non-commercial speculative accounts continuing to add to short length, although some long-side entries were evident in platinum (Futures & Options Combined), as the metal remains firmly entrenched within a USD 900 – 1050 trading range extending back to October 2016.    

From a technical standpoint, with the end of March low at AUD 1621.00 support now breached, it appears that the AUD 1591.50 (March 21st low) and AUD 1578.00 (March 15th low) could potentially be paid a visit in the coming weeks.
 
XAU/USD continues to hold station within a sideways range between its 55 & 200 Day moving averages at USD 1256.00 and 1233.00 respectively. However, given the importance placed on the 200 Day moving average by the investing community at large, it is likely that it will be more closely watched than any other average or technical indicator.
 
Good luck and have a good week ahead.
 
Regards,
Andre