Gold Technical Report: Gold prices remained in narrow range with positive bias and closed above the 10 days Exponential Moving Average @ 1924. Main support level is near 200 days EMA @ 1868 and main resistance level is near 50 days EMA @ 1947 to trade stronger. The short term Stochastics Oscillator is at 41 (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: The silver prices also, remained in narrow range with positive bias and closed above 10 days EMA @ 22.89. The main support is near 200 days EMA @ 22.40 and main resistance level is near 50 Days EMA @ 23.46 to show strength. The Short term Stochastics Oscillator is at 38 and Relative Strength Index near 44.
Fundamental Report: The gold prices remained flat during thin trading activity on Tuesday due to a U.S. holiday. The focus now shifts to the release of the Fed’s meeting minutes. It could provide further guidance on future interest rate hikes. The expectation of tighter monetary policy and elevated rates hampers the attractiveness of non-yielding gold. Additionally, the stability of the dollar index and subdued demand resulting from higher borrowing costs have influenced the market sentiment. Market participants will closely monitor the release of the minutes from the June 13-14 Federal Open Market Committee (FOMC) meeting on Wednesday for additional insights into the Fed’s stance. While there is a possibility of gold prices recovering to the range of $1,943 to $1,949 or potentially dropping lower to 1900, the prevailing rates environment continues to impact significant influence on 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.