Gold News Update - 13 June 2018

13 June 2018

PRECIOUS METALS RANGES - Trade Date: June 12th

COMMENTS / HIGHLIGHTS:

It would be fair to say that the eyes of the vast majority of the news-consuming world were on Singapore yesterday - June 12th- for the unprecedented and historic summit meeting between US President Trump and the Leader of the Democratic People’s Republic of Korea, Chairman Kim Jong-un (perhaps with the exception of the halfwits pundits at the New York Times who the US President excoriated at the end of May when he noted/Tweeted: “The Failing @nytimes quotes “a senior White House official,” who doesn’t exist, as saying “even if the meeting were reinstated, holding it on June 12 would be impossible, given the lack of time and the amount of planning needed.” WRONG AGAIN! Use real people, not phony sources.”)

The main points to take-away from the one-day meeting between the leaders were;
- North Korea has committed to full, irreversible denuclearisation on the Korean Peninsula
- The US has committed to the immediate cessation of war-game exercises in the region with ally South Korea, which were a cause of considerable consternation for the DPRK leadership
- US sanctions will remain in place for the time being and won’t be eased
- Commitments from both leaders for continuing dialogue and meetings

There was little by way of reaction from the precious metals complex with gold remaining clamped within a narrow trading band. In all likelihood investors feel that there are bigger fish to fry with a US Federal Reserve FOMC monetary policy announcement scheduled for Wednesday (market consensus favouring a 25 basis point rise in interest rates as a lay down misere), in addition to an ECB monetary policy announcement on Thursday.

TECHNICAL COMMENTS:

XAU/USD: Since mid-May, XAU/USD has been caterpillaring along the support line which commenced on 16/12/16 at USD 1121.00 (and beneath which XAU/USD has yet to close) with many minor (false) breaks. Whether this is down to what are euphemistically referred to as “the summer doldrums” when many investors are absent from their desks as they enjoy the northern hemisphere summer holiday season, or whether this is a result of the characteristic trading that precedes an announcement by the US central bank’s FOMC is probably a moot point for the present moment, the market has largely been stuck within a narrow USD 1295 – USD 1300 trading band with occasional extensions USD 5.00 either side.

XAU/AUD: Since breaking below a significant technical uptrend line at the start of the month, XAU/AUD decamped to the also technically significant 200 Day moving average where it found support and formed a base last week. The market has been steadily grinding its way back in the direction of its 55 Day moving average at AUD 1730.00 but will first have to overcome some minor (down)trendline resistance at AUD 1724.00 before the possibility of further downside price action back towards the 200 Day moving average at AUD 1688.00 can be discounted.

Good luck.

Regards,
Andre

Gold News Update - 13 June 2018

13 June 2018

PRECIOUS METALS RANGES - Trade Date: June 12th

COMMENTS / HIGHLIGHTS:

It would be fair to say that the eyes of the vast majority of the news-consuming world were on Singapore yesterday - June 12th- for the unprecedented and historic summit meeting between US President Trump and the Leader of the Democratic People’s Republic of Korea, Chairman Kim Jong-un (perhaps with the exception of the halfwits pundits at the New York Times who the US President excoriated at the end of May when he noted/Tweeted: “The Failing @nytimes quotes “a senior White House official,” who doesn’t exist, as saying “even if the meeting were reinstated, holding it on June 12 would be impossible, given the lack of time and the amount of planning needed.” WRONG AGAIN! Use real people, not phony sources.”)

The main points to take-away from the one-day meeting between the leaders were;
- North Korea has committed to full, irreversible denuclearisation on the Korean Peninsula
- The US has committed to the immediate cessation of war-game exercises in the region with ally South Korea, which were a cause of considerable consternation for the DPRK leadership
- US sanctions will remain in place for the time being and won’t be eased
- Commitments from both leaders for continuing dialogue and meetings

There was little by way of reaction from the precious metals complex with gold remaining clamped within a narrow trading band. In all likelihood investors feel that there are bigger fish to fry with a US Federal Reserve FOMC monetary policy announcement scheduled for Wednesday (market consensus favouring a 25 basis point rise in interest rates as a lay down misere), in addition to an ECB monetary policy announcement on Thursday.