Gold Technical Report:Gold prices declined further yesterday and closed below 100 days Exponential moving average @ 1938 for fisrt time in the last 15 trading sessions. The primary trend support is near 200 days EMA @ 1877. 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 5 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 44 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallely and closed below 50 days Exponential moving average @ 23.80 for fisrt time in the last 15 trading sessions. 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 support is near 100 EMA @ 23.60. The primary trend support is near 200 days EMA @ 22.67. The Short term Stochastics Oscillator is at 12 and Relative Strength Index near 44.
Fundamental Report: Fitch became the latest credit rating agency to downgrade the United States of its triple A rating, saying successive standoffs over the nation’s debt ceiling and rapidly ballooning federal debt have cast doubt on the U.S to meet all its payment obligations. The historic downgrade, moves the federal government’s rating as a currency issuer from AAA to AA+. A lower credit rating could make borrowers less likely to lend money to the federal government on favourable terms, which in return will drive up costs for U.S taxpayers. 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.