Gold Technical Report: Yesterday, Gold played rangebound after the bounceback it showed a day before. It closed in between 10 Days Moving Average @1960 and 50 DMA @1990 and registered a DOJI candle. The next medium term support stands at 100 DMA @1936. The short term Stochastics Oscillator is at 54 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 47 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices also traded in a narrow range following the suit, and closed near 10 DMA @ 23.55. Silver is now poised between support at 100 DMA @ 23.45 and resistance at 50 DMA @ 23.85 The medium term trend looks intact as all of these averages above 200 DMA @ 22.16. The Short term Stochastics Oscillator is at 63 and Relative Strength Index near 44.
Fundamental Report: Market sentiment regarding the next step of the Federal Reserve has been changing as statements by Federal Reserve officials and reports are released. The opinion had been predominantly in favor of a pause in interest rate hikes. However, that had reversed after a couple of Federal Reserve officials came out with exceedingly hawkish comments last week which questioned the resolve of the Fed to pivot from an extremely aggressive monetary policy in which they have raised interest rates at every consecutive FOMC meeting for over a year. The probability that the Federal Reserve will implement its first interest rate hike pause since March 2022 has strengthened considerably over the last week. One week ago, the CME’s FedWatch indicated that there was a 35.8% probability of a rate pause, on Friday the probability surged to 74.7%, and today there is an 81.8% probability that the Fed will pause hikes after 10 consecutive rate hikes at each FOMC meeting since last year.