Gold Technical Report:Gold prices retraced yesterday and closed below 10 days Exponential moving average @ 1955 and also the 100 EMA @ 1941. The primary trend support is near 200 days EMA @ 1876. If prices move above 1984 last 3 months TrendLine resistance, it will open room for further advancement upto the major psychological level of 2000 and above. The short term Stochastics Oscillator is at 28 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 49 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallely and crossed below 10 days EMA @ 24.44. Last month it has moved up with strength during the double bottom formation on daily charts, giving 2 consecutive massive upmoves as it also crossed a major psychological level of 25.00 on closing basis, for silver after almost 2 months of struggle. The immediate supports are 50 days EMA @ 23.98 and 100 EMA @ 23.66. The primary trend support is near 200 days EMA @ 22.68. The Short term Stochastics Oscillator is at 41 and Relative Strength Index near 52.
Fundamental Report: Gold prices declined by over 1% today as traders reacted to dollar strength and stronger yields on U.S. Treasuries. But that explanation lacks the complete backdrop to the multiple reasons why gold is trading under pressure today. Market participants are reacting with extreme caution before the release of Friday’s nonfarm payroll jobs report. Current forecasts are predicting that the report will reveal that 200,000 new jobs were added in July after increasing by 209,000 in June. last week’s FOMC meeting statements and comments by Chairman Powell left many investors, analysts, and economists with more questions than answers regarding the future guidance as it pertains to the monetary policy of the Federal Reserve, it is widely believed that next month’s FOMC meeting will not contain another rate hike. The most current information provided by the CME’s Fedwatch tool predicts that there is an 82.5% probability that rates will remain unchanged after the Fed raised rates by ¼% at the last FOMC meeting.