Daily Report – 01 June 2023

01 June 2023
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
1974
1953
1962
1958
+4.00
+0.20%
Silver
23.60
23.08
23.50
23.18
+0.32
+1.38%

Gold Technical Report: Gold had moved up from the day lows after finding a support near 100 DMA @ 1938 on Tuesday. Yesterday, it continued the positive momentum and closed above 10 DMA @ 1961. If the rally sustains, next target can be 50 DMA @ 1992. The fact that prices and all these averages are trading above major support at 200 DMA @ 1831 (below which the trend may turn bearish ) makes the medium term trend bullish. Gold has been facing selling pressure on continuous profit booking after it made a new high around 2080 last month. The short term Stochastics Oscillator is at 42 (it is considered overbought when above 80 and oversold  when below 20) and Relative Strength Index (RSI) is at 46 (it is considered overbought when above 70 and oversold when below 30).

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
1900
1919
1938
1964
1992
2018
2047

Silver Technical Report: The silver prices also moved up following the suit and successfully closed above the resitance at 100 DMA @ 23.34, albeit after a struggle of earlier 3 trading sessions. After clearing this level , next target stands at 50 DMA @ 24.42. The medium term trend looks intact as both of these averages above 200 DMA @ 22.03. The Short term Stochastics Oscillator is at 67 and Relative Strength Index near 43.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
23.00
23.12
23.36
23.52
23.75
24.08
24.42

Fundamental Report: Conflicting market forces have had a strong impact on gold pricing, inflation, and higher rates. This is because higher inflation creates bullish market sentiment in gold, while higher interest rates create bearish market sentiment. The deal struck between President Biden and Speaker Kevin McCarthy over the three-day weekend contains bipartisan legislation in which neither side got everything they were hoping for, which is the only way for a compromise to be reached and a deadlock to be avoided. Yesterday the bill went to the Rules Committee and is scheduled for a vote by Congress today. Because it is a bipartisan bill composed of a compromise there is chatter on both sides of the political fence with both Republicans and Democrats who are opposed to the legislation as it stands. Market analysts feel that this bill will pass both the House and Senate and that a debt ceiling crisis will be avoided. This brings us to recent changes in the tone of many Federal Reserve officials. There have been a few Fed officials that have been calling for another rate hike at the FOMC meeting this month. This tone has softened in the last 24 hours as seen through the eyes of the CME’s FedWatch tool. Yesterday, this probability indicator predicted a 66.6% likelihood that the Federal Reserve would raise rates by ¼%, which is down to 34.9% today.

Key US Economic Reports & Events
When
Actual
Expected
Previous
ADP Non-Farm Employment Change
4:15 PM
278K
173K
296K
Unemployment Claims
4:30 PM
232K
236K
229K
ISM Manufacturing PMI
6:00 PM
46.9
47.0
47.1
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