Gold Technical Report: Gold prices remained subdued as it slipped from intraday high and crossed below the 10 days Exponential Moving Average @ 1919. Main support level is near 200 days EMA @ 1868 and immediate resistance level is near 50 days EMA @ 1944 to trade stronger. The short term Stochastics Oscillator is at 32 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 40 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices slipped from intraday high near 100 days EMA @ 23.28 and crossed below 10 days EMA @ 22.93. The main support is near 200 days EMA @ 22.40 and main resistance level is near 50 Days EMA @ 23.44 to show strength. The Short term Stochastics Oscillator is at 36 and Relative Strength Index near 42.
Fundamental Report: The markets have gone back and forth during the trading session on Thursday, as we got ADP numbers that were roughly double what were expected. Because of this, the natural reaction was that interest rates were to spike, and therefore traders started to buy the US dollar, putting downward pressure on gold as a result. With the Non-Farm Payroll numbers coming out on Friday, this will put a spotlight on the US dollar obviously, and that obviously could have a major influence on what happens next in the gold market. Pay close attention to the US dollar, but perhaps more importantly, pay close attention to interest rates in America. If they start to climb in the bond market, that obviously puts downward pressure on gold as being able to sit on bonds and earn over a 5% return is very attractive to most traders. That being said, the market is likely to continue to see a lot of noisy behavior, as the jobs number will obviously take center stage for the next 24 hours. Earlier this week, 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 metals.