Gold Technical Report: Gold rallied up yesterday from the intra day lows near 100 Days Moving Average @ 1940 and closed above 10 DMA @ 1960. Now, next resistance is at 50 DMA@ 1968 whereas next major support is near 200 DMA @ 1868 The short term Stochastics Oscillator is at 47 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 50 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices also moved up following the suit from the intra day low near 100 DMA @ 23.48 and closed above 50 DMA @ 23.89 The medium term trend looks intact as all of these averages above 200 DMA @ 22.40. The Short term Stochastics Oscillator is at 94 and Relative Strength Index near 56.
Fundamental Report: Next week the Federal Reserve will hold the next FOMC meeting in which it is highly anticipated that they initiate the first interest rate hike pause after 10 consecutive FOMC meetings resulted in higher rates. Inflation continues to remain elevated and is moved higher as seen through the last PCE report. Also, the jobs report for May showed that the U.S. economy gained 339,000 new jobs with the unemployment level rising to 3.7%. Now investors and market participants are bracing for an onslaught of U.S. government bond issuances as the treasury must now refill its coffers. According to MarketWatch, Investors are bracing for an estimated $1 trillion deluge of Treasury issuance to start flowing later this week and continue in the coming months as part of the latest debt-ceiling resolution. Yesterday, Unemployment Claims for for state unemployment benefits jumped 28,000 to a seasonally adjusted 261,000 for the week ended June 3, the highest level since October 2021. Economists polled by Reuters had forecast 235,000 claims for the latest week. The U.S central bank faces a tricky balancing act, against a backdrop of one of the most uncertain economic environments.