Gold Technical Report: Gold prices have been on declining throughout last week and for last 3 trading sessions it has been making a DOJI formation ( open and close prices at same level) indicating some indecision about the trend in the markets. Prices have reached at 7 moths low and weakness persists as it trades beow 200 days EMA @ 1892 and 10 Days EMA@ 1848 has already crossed below the same. Major support is near 1760 wich is 200 weeks EMA. Major 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 declined further yesterday showing both side fluctuations. The prices are making an intra day low near 20.68 and bouncing back at the close for last 3 days. It has crossed below the conjunction point of 50 days EMA and 100 days EMA near 23.50 , 200 days EMA @ 23.00 and also 10 days EMA @ 21.68 all in last one week alone. The Short term Stochastics Oscillator is at 8 and Relative Strength Index near 25.
Fundamental Report: The market is treading cautiously, with traders eyeing the upcoming U.S. non-farm payrolls report. The commodity inched up slightly on Friday after a nine-session decline but remained within the previous day’s range, signaling investor indecision. The narrative of a tight labor market has been one of the key factors pressuring gold. Traders are growing wary as strong labor data is likely to give the Federal Reserve ammunition to keep rates elevated. Since peaking above $2,000 per ounce in May, gold has retreated nearly 12%, responding to hawkish cues from the Fed. Meanwhile, the U.S. dollar index eased for a second session, offering some breathing room for gold. This comes as benchmark U.S. 10-year Treasury yields retreat from a 16-year peak. However, unless there’s substantial evidence that Treasury yields have topped out, it’s unlikely that gold will embark on a bullish journey. The market is now geared up for today’s nonfarm payrolls data, projected to show an addition of 170,000 jobs. A stronger-than-expected number could send gold plummeting below $1,800. Simultaneously, the SPDR Gold Trust ETF is registering its lowest holdings since August 2019, indicating that rallies are likely driven by short-covering rather than genuine buying. Until the jobs data clarifies the Federal Reserve’s stance, gold is expected to trade steady-to-lower. The market lacks the conviction for a definitive move, and only a significant technical reversal supported by high trading volumes could inject some bullish sentiment.