Gold Technical Report: Gold prices rose initially to make an intraday high touching 100 days EMA @ 1934 but slipped from there to close below the 10 days Exponential Moving Average @ 1921. Main support level is near 200 days EMA @ 1869 and immediate resistance level is near 50 days EMA @ 1946 to trade stronger. The short term Stochastics Oscillator is at 40 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 42 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices opened near 10 days EMA @ 22.97 and marched up to make intra day high near 100 DMA @ 23.34 . The main support is near 200 days EMA @ 22.38 and main resistance level is near 50 Days EMA @ 23.47 to show strength. The Short term Stochastics Oscillator is at 46 and Relative Strength Index near 48.
Fundamental Report: The minutes from the June meeting supported the expectation of higher interest rates, leading to some profit-taking in gold. The focus now turns to labor market data, China’s export controls, and Janet Yellen’s visit, which could shape the near-term sentiment for gold prices.The gold prices are trading in narrow range as investors eagerly anticipated a wave of U.S. economic data that could impact the Federal Reserve’s policy trajectory. The minutes of the June meeting reaffirmed the expectation of higher interest rates in the future, causing some unwinding in gold prices from previous bullish positions. The upcoming U.S. Labor Department’s Job Openings and Labor Turnover Survey (JOLTs), as well as updates on China’s export controls on semiconductor metals and U.S. Treasury Secretary Janet Yellen’s Beijing visit. The Federal Reserve expressed a united front at the June meeting, deciding to hold interest rates steady as a means of buying time to assess the need for further rate hikes. Traders have now priced in an 89% chance of a 25-basis-point rate hike in July. Rising U.S. interest rates increase the opportunity cost of holding non-yielding assets like gold, adding pressure to the precious metal. Market participants will also closely monitor the U.S. labor market data on Friday, particularly wage pressures. They are seeking insights into the trajectory of Fed policy.