Gold Technical Report: Gold prices made fourth successive upmove yesterday as it has nicely bounced from the support of 10 days Exponential Moving Average and trading near all time high. The upmove looks confident as it had reclaimed the psychological mark of 2000 and also the 100 days Exponential Moving Average recently. The short term Stochastics Oscillator is at 93 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 80 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallely after it witnessed a correction yesterday on the back of rally for 3 straight sessions. Last week it crossed above 10, 50 and 100 days EMA in a single day. The recent upmoves in the past were capped around 23.40, near 200 days Exponential Moving Average, which will now act as a support. The Short term Stochastics Oscillator is at 83 and Relative Strength Index near 64.
Fundamental Report: The Gold reached a new record high, fueled largely by expectations of U.S. monetary policy easing. The additional boost came as the dollar weakened following Federal Reserve Chair Jerome Powell’s indication of a potential rate cut later in the year. Typically, gold struggles in environments of high U.S. interest rates, which increase returns on competing assets and bolster the dollar, thereby raising gold’s cost in other currencies. However, the current market reaction to policy expectations has been significantly stronger than long-term value. The Federal Open Market Committee has held interest rates at a two-decade high since July, leaving the outlook for the Fed’s policies cloudier than at any time since it began hiking rates back in March 2022. As a result, the past several months have seen a changing dynamic between financial markets and the Federal Reserve over the pace and timing of interest rate cuts this year.