Gold Technical Report: The gold prices came down on selling pressure last week but showing consolidation signs around 1700 levels. The medium term trend looks further bearish as prices continue to trade below 50 DMA which itself is trading below 200 DMA. Any slippage down the nearest main bottom at $1676 will turn the Main trend negative. On the upside, the major resistance will be at 50 DMA @ 1752 . The Short term Stochastics Oscillator is at 30 and RSI momentum is near 37.
Silver Technical Report: Silver witnessed continued selling pressure last week. It still looks further bearish as 20 DMA has crossed below 200 DMA on weekly charts. The next major resistence will be faced around 50 DMA around 19.38. The Short term Stochastics Oscillator is at 28 and RSI momentum near 34.
Fundamental Report: Gold closed higher on Friday, bolstered by a drop in Treasury yields and a weaker U.S. Dollar after a major U.S. jobs report came out mostly in line with pre-report estimates. Nonetheless, worries about rising interest pushed gold prices lower for a third consecutive week. The SPDR Gold Shares ETF (GLD) finished at $159.27, up $1.40 or +0.89%. The response by the overall market surprised most traders with some calling it a “goldilocks” report, meaning it didn’t suggest weakness, but it’s wasn’t too strong to prompt a supersized rate hike by the Fed. In fact, as of Friday’s close, the chances of a 75-basis-point rate hike by the Fed on September 21 had fallen from 74% (pre-NFP report) to 56% (post-NFP report). Non-Farm Payrolls rose solidly in August amid an otherwise slowing economy, while the unemployment rate ticked higher as more workers rejoined the labor force, the Bureau of Labor Statistics reported Friday. The economy added 315,000 jobs for the month, just below the Dow Jones estimate for 318,000 and well off the 526,000 in July and the lowest monthly gain since April 2021. The unemployment rate rose to 3.7%, two-tenths of a percentage point higher than expectations, largely due to a gain in the labor force participation rate to 62.4%, tied for the highest level of the year. Wages continued to rise, though slightly less than expectations. Average hourly earnings increased 0.3% for the month and 5.2% from a year ago, both 0.1 percentage point below estimates. The yield on the 2-year Treasury note ticked lower on Friday after August’s jobs report came in near expectations and eased some fears that a hot labor market would force the Federal Reserve to continue hiking rates at an aggressive pace in order to tame surging prices. The dollar eased from a 20-year high on Friday after data showed the pace of U.S. hiring rose more than expected in August, but wage growth moderated and unemployment ticked higher, giving the Federal Reserve some wiggle room when it raises interest rates later this month. According to the CME’s FedWatch tool, there is a 68.5% probability that the Federal Reserve will raise rates by 75 basis points during the September FOMC meeting.