Gold Technical Report: Gold prices have been on declining continuously for last 7 trading sessions and yesterday registered a red DOJI ( open and close prices at same level) indicating some indecision in the markets. Prices have reached at 7 moths low and weakness persists as it trades beow 200 days EMA @ 1890 and 10 Days EMA@ 1860 has already crossed below the same. Major support is near 1760 wich is 200 weeks EMA. Majot upside resistance lies near 1900 psychological mark and then the conjunction point of 50 days EMA and 100 days EMA near 1919 and then 1951 Horizontal TrendLine touchpoint. The short term Stochastics Oscillator is at 6 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 19 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices are also in a falling mode parallely and posted a green DOJI ( open and close prices at same level) indicating some indecision in the markets. The prices made an intra day low near 20.70 and bounced back sharply. It has crossed below the conjunction point of 50 days EMA and 100 days EMA near 23.23 , 200 days EMA @ 23.00 and also 10 days EMA @ 22.00 all in last one week alone. The Short term Stochastics Oscillator is at 12 and Relative Strength Index near 25.
Fundamental Report: As The Federal Reserve’s resolve to keep interest rates elevated for longer with the possibility of one more quarter percent rate cut this year. However, what has crippled gold immensely is the fact that the Federal Reserve has revised its monetary policy to reduce the rate cuts next year in half. In June, the Federal Reserve’s dot plot was projecting a total of four quarter percent rate cuts which would bring down the Fed funds rate by a full percent. The most recent dot plot released at the September FOMC meeting had revised the number of rate cuts next year cutting them in half. Currently, the Federal Reserve is projecting that it will cut rates by ¼% twice rather than four times. If the Federal Reserve does reduce the number of rate cuts, only initiating a total of a ½% cut it would mean that the Fed funds rates would remain elevated above 5% throughout 2024.