Gold Technical Report: Gold prices has started showing some strength last 2 days after a mild correction , for a few days earlier. Medium trend had picked up pace after crossing 50 DMA which is at 1694 on Daily charts currently. The next Major resistance is 200 DMA @ 1796, above which the main trend may turn positive. The short term Stochastics Oscillator is at 85 and Relative Strength Index is at 66.
Silver Technical Report: The silver prices, parallel with gold prices showed some upmove yesterday after earlier profit booking. The prices continue to trade near 200 DMA @ 21.32. Downside, major support is only at 50 DMA @ 20.10, crossing below which may change the medium term trend into negative. The Short term Stochastics Oscillator is at 82 and RSI momentum near 64.
Fundamental Report: The Gold and silver are gushing higher late in the session on Wednesday after Federal Reserve Chair Jerome Powell conveyed remarks pointing to smaller rate increases ahead. The comments drove Treasury yields and consequently the U.S. Dollar lower. The SPDR Gold Shares ETF (GLD) is at $164.59, up $1.86 or +1.14%. “Despite some promising developments, we have a long way to go in restoring price stability,” Powell said in remarks delivered at the Brookings Institution, noting that central bank moves take time to work their way into the system. “Thus, it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,” he added. “The time for moderating the pace of rate increases may come as soon as the December meeting.” Various members of the Federal Reserve have been extremely vocal about upcoming interest rate hikes. One of the more hawkish Federal Reserve members is the St. Louis Fed President James Bullard. Last week he commented on the need for the Federal Reserve’s benchmark rate to go as high as 7% to deal with lowering inflation.
People in China’s southern manufacturing hub of Guangzhou clashed with white hazmat-suited riot police on Tuesday night, videos on social media showed, as frustration with stringent Covid-19 rules three years into the pandemic boiled over. China’s capital Beijing reported 1,282 symptomatic and 3,240 asymptomatic cases on Tuesday. High numbers were also reported from Shanghai, Guangzhou, Chongqing. Concerns about mass protests in China are front and center. According to the New York Times, “After a weekend of confrontations between officials and demonstrators, video from two sites in Shanghai and Beijing showed a heavy security presence.” Chinese citizens have staged protests against China’s strict Covid restrictions and lockdowns which have led to nationwide protests. Investors are concerned that the lockdowns and strict restrictions will limit economic growth in China the world’s second-largest economy.