Gold Technical Report: Gold prices remained subdued throuout the week but bounced back on Friday to make an intra day high at 10 days Exponential Moving Average @ 1921. Main support level is near 200 days EMA @ 1866 and main resistance level is near 50 days EMA @ 1950 to trade stronger. 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 40 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices moved upwards and made an intra day high near 10 days EMA @ 22.86. The main support is near 200 days EMA @ 22.37 and main resistance level is near 50 Days EMA @ 23.50 to show strength. The Short term Stochastics Oscillator is at 26 and Relative Strength Index near 42.
Fundamental Report: The stronger U.S. dollar and the possibility of more interest rate hikes by the Federal Reserve impacted the appeal of bullion. However, there are indications that the pullback in prices could attract bargain hunters, potentially supporting gold in the near term. While U.S. consumer spending remained stagnant in May, suggesting that the Fed’s rate hikes to curb inflation were gradually taking effect, the core PCE price index, which excludes food and energy prices and is the Fed’s preferred measure of inflation, saw a 4.6% year-on-year increase. These conditions provide a favorable environment for gold to extend its rebound from the $1,900 area. Investors are anticipating a 25 basis points rate hike in July. They also expect rates to remain in the range of 5.25% to 5.5% before declining in 2024. The prospect of higher interest rates deters investment in non-yielding assets like gold. Looking ahead, a data-heavy week in the United States includes the U.S. Labor Department’s job openings and labor turnover survey, the monthly payrolls report, and the release of the minutes from the June 13-14 Fed meeting. These releases may provide further insights into the economic conditions and potential impacts on the Federal Reserve’s decision-making.